A US Company Sells Merchandise to a Foreign Company Denominated in in U.S

question 26

Multiple Choice

A U.S. company sells merchandise to a foreign company denominated in U.S. dollars. Which of the following statements is true?

• A) If the foreign currency appreciates, a foreign exchange gain will result.
• B) If the foreign currency depreciates, a foreign exchange gain will result.
• C) No foreign exchange gain or loss will result.
• D) If the foreign currency appreciates, a foreign exchange loss will result.
• E) If the foreign currency depreciates, a foreign exchange loss will result.

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Definitions:

Depersonalization

Depersonalization is a dissociative disorder where individuals feel detached from their own thoughts, feelings, or body, experiencing a sense of being an outside observer to themselves.

Obedience

The act of following orders or directions from authority figures, often studied in psychology to understand the extent and limits of social influence.

Reciprocity

A social norm of responding to a positive action with another positive action, fostering mutual benefit and cooperation.

Mere-Exposure Effect

A mental effect in which individuals naturally favor items or concepts they recognize due to their familiarity.