1. The extent to which an enterprises future earning power is affected by changes in the exchange rate is known as _________ a type of foreign exchange rate risk. A. translation exposure B. transaction exposure C. economic exposure

2. Suppose that the exchange rate between the Euro and the US dollar was $1.20 = 1 one month ago. If the exchange rate today is $1.10 = 1, we say the US dollar has ____ versus the Euro and dollar-priced goods and services will appear ____ expensive to those holding euros. A. appreciated / more C. depreciated / more B. appreciated / less D. depreciated / less