AFP

CTP · Question #14

(Topic 1) Which of the following is subject to translation exposure?

The correct answer is C. A Japanese subsidiary in the United States with U.S. dollar liabilities. See the full explanation below for the reasoning.

Question

(Topic 1)

Which of the following is subject to translation exposure?

Options

AA German company with a subsidiary in Spain
BA Spanish company with revenues in euros
CA Japanese subsidiary in the United States with U.S. dollar liabilities
DA U.K. company that exports goods to the United States

How the community answered

(45 responses)

A
4% (2)
B
2% (1)
C
82% (37)
D
11% (5)

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