A US-Based Company That Exports Goods and Has Accounts Receivable Denominated

question 86

Multiple Choice

A U.S.-based company that exports goods and has accounts receivable denominated in a foreign currency ________.

• A) faces no risk if the relations between the countries get rough
• B) faces the risk that the U.S. dollar will depreciate in value relative to the foreign currency
• C) faces the risk that the U.S. dollar will appreciate in value relative to the foreign currency
• D) faces the risk that the foreign currency would appreciate in value relative to the U.S dollar