​Which of the Following Is True of an Exchange Loss

question 1

Multiple Choice

​Which of the following is true of an exchange loss?

• A) ​It is a loss on the exchange of one currency for another due to depreciation of the home currency.
• B) ​It is a loss on the exchange of one currency for another due to depreciation of the foreign currency.
• C) ​An exchange loss occurs when the currency of the home country strengthens relative to the foreign country's currency.
• D) ​An exchange loss is not a practical scenario.

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