If a sale on account by a U.S.company is made with a foreign company,and the U.S.company has no foreign currency risk,then
A)the U.S.company has measured the transaction in U.S.dollars.
B)the U.S.company has denominated the transaction in U.S.dollars.
C)the foreign company has measured the transaction in their own currency.
D)the foreign company has denominated the transaction in their own currency.

Question

Quizplus · Accepted Answer

If the U.S. company has no foreign currency risk, it means that they have denominated the transaction in U.S. dollars. This means the foreign company would pay in U.S. dollars, and the U.S. company would receive U.S. dollars without any foreign currency exchange involved.

If a Sale on Account by a U