If a Foreign Currency Is Strengthening with Respect to the Canadian

question 4

Multiple Choice

If a foreign currency is strengthening with respect to the Canadian dollar, which of the following is true?

• A)Both the current-rate method and the temporal method would show an exchange gain.
• B)Both the current-rate method and the temporal method would show an exchange loss.
• C)The current-rate method would show an exchange gain and the temporal method would show an exchange loss.
• D)The current-rate method would show an exchange loss and the temporal method would show an exchange gain.

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