When a company is engaged in an international transaction and agrees to use a foreign currency to conduct the transaction:

When a company is engaged in an international transaction and agrees to use a foreign currency to conduct the transaction:

a) it will use an S.D.R.

b) it is exposed to a certain amount of risk.

c) it will use the services of the Ex-Im Bank.

d) All of the above

e) None of the above

Answer: it is exposed to a certain amount of risk

A company is exposed to a certain amount of risk, due to possible fluctuations in the currency exchange rates, in an international transaction when it agrees to use a foreign currency.

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