A US Automotive Company Purchases Brake Linings from a Firm in in Germany

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 depreciates 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.