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Chose the best question Under the Current rate method of translations the foreign exchange gains and losses are reflected in a separate equity account and,
Chose the best question
- Under the Current rate method of translations the foreign exchange gains and losses are reflected in a separate equity account and, thus, they do not affect companys earnings.
- True
- False
- Under the Temporal method of translations the foreign exchange gains and losses are usually lower then under the Current Rate Method
- True
- False
- How can managers reduce the translation exposure of a company?
Reduce Net Exposed Assets
Increase Exposed Assets
Increase net exposed Assets
Reduce Exposed Liability
- To take advantage of expect foreign currency appreciation, the manager should try to:
Maximize Net Exposed Assets
Increase Exposed Liabilities
Decrease Exposed Assets
Minimized Net Exposed Asset
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