When Exchange Rates Change,the Value of a Foreign Subsidiary's Assets

question 49

Multiple Choice

When exchange rates change,the value of a foreign subsidiary's assets and liabilities that are denominated in a foreign currency change

• A)when they are viewed from the perspective of the subsidiary firm.
• B)when they are viewed from the perspective of the parent firm.
• C)but this is only of material concern if the parent firm is liquidating the subsidiary in a bankruptcy and is forced to realize the value of the assets and liabilities at the current exchange rate.
• D)none of the options