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.

---

Definitions:

Attachment Bonds

Emotional connections formed between individuals, crucial for child development.

Preference

The act of favoring or choosing something over another based on subjective criteria.

Insecure Attachment

A type of emotional bond with a caregiver characterized by anxiety or avoidance, often due to inconsistent or unresponsive caregiving.

Loving Parent

A caregiver who provides affection, attention, and support to foster the emotional and developmental well-being of their child.