Question : 121.Countertrade makes sense when a country’s currency _____. A. lagging B. nonconvertible C. externally convertible D. freely : 1299380

121.Countertrade makes sense when a country’s currency is _____.  

A. lagging

B. nonconvertible

C. externally convertible

D. freely convertible

E. leading

122.Which of the following refers to the extent to which the income from individual transactions is affected by fluctuations in foreign exchange values?  

A. Translation exposure

B. Economic exposure

C. Purchasing power parity

D. Transaction exposure

E. Forward exchange rate

123.Which of the following is an example of transaction exposure?  

A. Obligations for the purchase of goods at previously agreed prices

B. Borrowing of funds in domestic currency

C. Impact of currency exchange rate changes on the reported financial statements of a company

D. Long-term effect of changes in exchange rates

E. The effect of changing exchange rates on future prices, sales, and costs

124.What is meant by translation exposure?  

A. The long-run effect of changes in exchange rates on future prices, sales, and costs

B. The impact of currency exchange rate changes on the reported financial statements of a company

C. The extent to which a firm’s future international earning power is affected by changes in exchange rates

D. The extent to which the income from individual transactions is affected by fluctuations in foreign exchange values

E. The obligations for the purchase or sale of goods and services at previously agreed prices

125.Which of the following is concerned with the present measurement of past events?  

A. Economic exposure

B. Transaction exposure

C. Arbitrage

D. Translation exposure

E. Currency speculation

126._____, a category of foreign exchange risk, refers to the extent to which the reported consolidated results and balance sheets of a corporation are affected by fluctuations in foreign exchange values.  

A. Economic exposure

B. Transaction exposure

C. Translation exposure

D. Countertrade

E. Carry trade

127.What is meant by economic exposure?  

A. The extent to which a firm’s future international earning power is affected by changes in exchange rates

B. The impact of currency exchange rate changes on the reported financial statements of a company

C. The extent to which the income from individual transactions is affected by fluctuations in foreign exchange values

D. The extent to which the quantity of money in circulation rises faster than the stock of goods and services

E. The extent of disparity in prices, when expressed in the same currency, of similar products in different countries

128._____, a category of foreign exchange risk, is concerned with the long-run effect of changes in exchange rates on future prices, sales, and costs.  

A. Currency speculation

B. Transaction exposure

C. Economic exposure

D. Translation exposure

E. Countertrade

129._____, a category of foreign exchange risk, is concerned with the effect of exchange rate changes on individual transactions, most of which are short-term affairs that will be executed within a few weeks or months.  

A. Purchasing power parity

B. Transaction exposure

C. Economic exposure

D. Translation exposure

E. Currency speculation

130.A lead strategy involves:  

A. delaying foreign currency payables when a currency is expected to appreciate.

B. delaying foreign currency payables when a currency is expected to depreciate.

C. attempting to collect foreign currency receivables early when a foreign currency is expected to appreciate.

D. attempting to collect foreign currency receivables early when a foreign currency is expected to depreciate.

E. delaying the collection of foreign currency receivables when a foreign currency is expected to appreciate.