Question
A foreign currency receivable arising from an export sale creates an asset exposure to foreign exchange risk, so which of the following could occur in
A foreign currency receivable arising from an export sale creates an asset exposure to foreign exchange risk, so which of the following could occur in this situation?
The possibility that an asset denominated in U.S. dollars will decline in value because of changes in the foreign exchange rate. | ||
The possibility that an asset denominated in a foreign currency will change in value because of a change in the foreign exchange rate. | ||
The loss resulting from an import purchase when a foreign currency appreciates. | ||
The loss resulting from an import purchase when a foreign currency depreciates. |
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