_____ risk exists when the sale is in the importer's currency and that currency depreciates in terms of the dollar, leaving the exporter with a lesser number of dollars.
A)Foreign credit
B)Foreign exchange
C)Foreign transfer
D)Foreign payment
E)Foreign delivery

Question

Quizplus · Accepted Answer

Foreign exchange risk occurs when the value of the foreign currency in which a sale is made depreciates against the exporter's home currency (in this case, the dollar), resulting in the exporter receiving fewer dollars than expected when the foreign currency is converted.

_____ Risk Exists When the Sale Is in the Importer's