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

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Definitions:

Innovative Activities

Initiatives or processes aimed at creating new ideas, products, or methods, typically to improve efficiency or create value.

Reliable Performance

Consistently achieving a level of performance that meets the expectations and standards over time.

Flexible Behaviour

The ability to adapt actions and strategies in response to changing circumstances or environments.

Formal Work Groups

Teams established by an organization to achieve specific tasks, characterized by structured roles, responsibilities, and processes.