When Exchange Rates Change

question 38

Multiple Choice

When exchange rates change

• A)the value of a foreign subsidiary's foreign currency denominated assets and liabilities change to new numbers still denominated in the foreign currency.
• B)the value of a foreign subsidiary's foreign currency denominated assets and liabilities change when redenominated into the home currency.
• C)hedging should be done after the change.
• D)none of the options

---

Definitions:

Falsehood

A statement that is untrue, misleading, or inaccurate.

Agency Relationship

A legal connection between two parties where one, the agent, is authorized to act on behalf of the other, the principal, in dealings with third parties.

Pedestrian

An individual who travels on foot, especially in areas designated for walking.

Injuries

are damages or harm caused to the body, emotions, or mind of a person.