(14) Exchange rate risk of a foreign currency payable is an example of a. transaction exposure. b. translation exposure. c. operating exposure. d. None of the above

(15) A depreciating currency makes:

a. Import-competing goods less competitive

b. Export-competing goods more competitive

c. Export and import-competing goods more competitive

d. Export and export-competing goods more competitive

(16) The price elasticity of demand for commodity products tends to be a. highly elastic. b. highly inelastic. c. both a) and b) d. none of the above

(17) A domestic firm that sources and sells only domestically, a. faces exchange rate risk to the extent that it has international competitors in the domestic market. b. faces no exchange rate risk. c. should never hedge since this could actually increase its currency exposure. d. both b) and c)