If a/an _____ currency is utilized, the _____ bears the currency risk and is likely to build in additional contingency costs to cover its unknown 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, the supplier bears the currency risk and is likely to build in additional contingency costs to cover its unknown risk. This is because the supplier does not know what the exchange rate will be when they convert the buyer's currency back to their own. Therefore, it is advisable for the buyer to use their own currency to avoid such uncertainty.

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

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