With a _____, both parties agree that payment occurs as long as exchange rates do not fluctuate outside an agreed-upon range or band.
A)hedging agreement
B)payment in a foreign currency
C)speculation agreement
D)currency adjustment clause
E)payment in U.S.dollars

Question

Quizplus · Accepted Answer

A currency adjustment clause is a type of agreement between parties that sets a range or band for exchange rates. As long as the exchange rate stays within this range, payment will occur as agreed upon. If the exchange rate fluctuates outside of the agreed range, then the payment amount will be adjusted accordingly. This helps to protect both parties from unexpected changes in currency values.

With a _____, Both Parties Agree That Payment Occurs as Long