AFP
CTP · Question #410
CTP Question #410: Real Exam Question with Answer & Explanation
Sign in or unlock CTP to reveal the answer and full explanation for question #410. The question stem and answer options stay visible for context.
Question
- (Topic 5) A company agrees to pay ¥10,000,000 for a shipment from Japan. At the time the purchase order is placed the exchange rate is ¥168/US$. At the time of payment the exchange rate is ¥163/US$. What is the net effect on the dollar cost of the shipment if the transaction has NOT been hedged?
Options
- AAn increase of $5,000
- BAn increase of $1,825
- CA decrease of $5,000
- DA decrease of $1,825
Unlock CTP to see the answer
You've previewed enough free CTP questions. Unlock CTP for full answers, explanations, the timed quiz mode, progress tracking, and the master PDF. Question stem and options stay visible so you can still see what's on the exam.