If It Is Agreed That an International Exchange Will Be

question 3

True/False

If it is agreed that an international exchange will be in the currency of the exporter's country,then there is no exchange rate fluctuation risk for the importer.

---

Definitions:

Interest

Interest is the charge for borrowing money, typically expressed as an annual percentage rate.

Effective Rate

The actual interest rate on an investment or loan, considering the compounding of interest at specific intervals within a given time period.

Interest Rate

The proportion of a loan charged as interest to the borrower, typically expressed as an annual percentage.

Effective Yield

The total yield on an investment after considering the effects of compounding interest or dividends over a specific period.