When a US Company Purchases Parts from a Foreign Company, Which of Which

question 10

Multiple Choice

When a U.S. company purchases parts from a foreign company, which of the following will result in zero foreign exchange gain or loss?

• A) The transaction is denominated in U.S. dollars.
• B) The option strike price to sell foreign currency is less than the spot rate of the currency.
• C) The option strike price to buy foreign currency is less than the spot rate of the currency.
• D) The foreign currency appreciated in value relative to the U.S. dollar.
• E) The foreign currency depreciated in value relative to the U.S. dollar.

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Definitions:

Ascending

Moving upward or advancing to higher levels or positions.

Opioid Use

The consumption of opioid substances, either medically prescribed for pain relief or illicitly used.

Soft Formed Stool

A type of feces that is not too hard, indicating a healthy digestive system.

Quadrants

Scientific or mathematical divisions of a space or concept into four parts, often used in reference to abdominal regions in medicine or graphing in mathematics.