Exchange Rate Risk

question 64

Multiple Choice

Exchange rate risk

• A) exists when the contract is written in terms of the foreign currency.
• B) exists also in direct foreign investments and foreign portfolio investments.
• C) does not exist if the international trade contract is written in terms of the domestic currency.
• D) all of the above.

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Definitions:

Obtained

Acquired or secured something, typically through effort or request.

Cause Of Action

A set of facts or legal basis that enables one party to sue another.

Province

A principal administrative division of certain countries, especially in Canada, which is characterized by its own government and boundaries.

Defendant Resides

The legal jurisdiction or location where the defendant (the person accused in a lawsuit) lives or is based.