Multiple Choice
A U.S. automotive company purchases brake linings from a firm in Germany and promises to pay in euros in 30 days. Before the payment is made, the euro appreciates relative to the dollar. The U.S. firm:
A) is not affected.
B) will need fewer U.S. dollars.
C) will need more U.S. dollars.
D) will pay in U.S. dollars.
Correct Answer:
Verified
Correct Answer:
Verified
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