If a/an ____ currency is utilized,the ____ bears the currency risk and is likely to build in additional contingency costs to cover that risk.
A) supplier's...supplier
B) buyer's...supplier
C) buyer's...buyer
D) supplier's...buyer
E) Regardless of the currency chosen, both parties share the currency risk equally.

Question

Quizplus · Accepted Answer

If the buyer's currency is utilized, then the supplier bears the currency risk and may build in additional contingency costs to cover that risk. This is because the supplier must exchange the buyer's currency into their home currency, and any fluctuation in exchange rates could result in a loss for the supplier. Therefore, it is best for the buyer to consider the currency risk and choose a currency that is stable and predictable, or to negotiate with the supplier to share the risk.

If A/an ____ Currency Is Utilized,the ____ Bears the Currency

If A/an Currency Is Utilized,the Bears the Currency