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| 1. |
If the Indian subsidiary of a US firm has net exposed assets of Rp9,000,000 and the Indian rupee drops in value from Rp45.00/$ to Rp50.00/$, the US firm has a translation: |
| A. | Loss of $25,000 |
| B. | Gain of $20,000 |
| C. | Loss of $20,000 |
| D. | Gain of $25,000 |
| Answer» D. Gain of $25,000 | |