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CTP · Question #890

(Topic 9) Which of the following situations is the best example of transaction exposure? into their home currency.

The correct answer is C. A U.S. exporter sells merchandise to a French buyer and records a balance receivable. See the full explanation below for the reasoning.

Question

(Topic 9)

Which of the following situations is the best example of transaction exposure? into their home currency.

Options

BA company that purchases raw materials locally and sells its products in local markets
CA U.S. exporter sells merchandise to a French buyer and records a balance receivable
DA multinational corporation uses balance sheet hedging to reduce net exposure of the

How the community answered

(42 responses)

B
7% (3)
C
83% (35)
D
10% (4)

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