Which of the Following Firms Is Not Exposed to Translation

question 52

Multiple Choice

Which of the following firms is not exposed to translation exposure?

• A)Firm X, with a fully owned subsidiary that periodically remits earnings generated in Great Britain to the U.S.-based parent.
• B)Firm Y, with a fully owned subsidiary that periodically generates foreign losses in Sweden. The parent covers at least some of these losses.
• C)Firm Z, with a fully owned subsidiary that generates substantial earnings in Germany. The subsidiary never remits earnings but reinvests them in Germany.
• D)All of the above firms are exposed to translation exposure.

---

Definitions:

Full Load Current

The current drawn by an electrical machine, such as a motor or transformer, operating at its rated capacity under designated conditions.

Normally Closed

Normally closed is a term used to describe a configuration of an electrical or mechanical switch in which the default state of the switch is making contact, allowing current flow, until actuated.

Relay Contact

A relay contact is a switch operated by an electromagnet in a relay, used to open or close circuits electromechanically or electronically.

Control Relay Contacts

Components in a relay used to open or close an electrical circuit, thereby controlling the flow of electricity based on a control signal.