1. Direct exchange rate 2. Indirect exchange rate 3. Managing an exposed net asset position 4. Spot rates 5. Current rates 6. Foreign currency transaction gain 7. Foreign currency transaction loss 8. Foreign currency transactions A. Exchange rate for immediate delivery of currencies. B. Imports and exports whose prices are stated in a foreign currency. C. The primary currency used by a company for performing its major financial and operating functions. D. U.S. companies prepare their financial statements in U.S. dollars. E. 1 European curo equals $0.65. F. A forward contract is entered into when receivables denominated in European euros exceed payables denominated in that currency. G. Accounts that are fixed in terms of foreign currency units. H. 1 U.S. dollar equals 99 Japanese yen. I. Spot rate on the entity's balance sheet date. J. In an export or import transaction, the date that foreign currency units are received or paid, respectively. 9. Hedging a firm commitment 10. Functional currency II. Speculating