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Commerce · Q76

Miscellaneous in Commerce

Graduate and Post Graduate · Commerce · question 76

Q76

Which of the following statements is correct in regards to exchange rate risk of a firm importing goods? (1) If home currency weakens, the firm incurs a loss. (2) If home currency strengthens, the firm incurs a loss. Select the correct answer from the options given below:

A.
(1) Only
Answer
B.
(2) Only
C.
Both (1) and (2)
D.
Neither (1) nor (2)

Answer: Option A

Solution

Answer: Option A
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