Multiple Choice
A U.S.company that has purchased inventory from a German vendor would be exposed to a net exchange gain on the unpaid balance if the
A) amount to be paid was denominated in dollars.
B) dollar weakened relative to the Euro and the Euro was the denominated currency.
C) dollar strengthened relative to the Euro and the Euro was the denominated currency.
D) U.S.company purchased a forward contract to buy Euros.
Correct Answer:

Verified
Correct Answer:
Verified
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