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A USCompany That Has Purchased Inventory from a German Vendor Would

Question 33

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.​

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