A transaction loss would result from
A)an increase in the foreign exchange rate in relation to the Canadian rate applicable to an asset denominated in a foreign currency.
B)a decrease in the foreign exchange rate in relation to the Canadian rate applicable to a liability denominated in a foreign currency.
C)the import of merchandise when the transaction is denominated in a foreign currency.
D)a decrease in the foreign exchange rate in relation to the Canadian rate applicable to an asset denominated in a foreign currency.

Question

Quizplus · Accepted Answer

A transaction loss would result from a decrease in the foreign exchange rate in relation to the Canadian rate applicable to an asset denominated in a foreign currency. This means that the Canadian dollar has appreciated in value, making the foreign currency asset worth less in Canadian dollars.

A Transaction Loss Would Result from