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A US Parent Owns a Subsidiary in the U

Question 15

Multiple Choice

A U.S. parent owns a subsidiary in the U.K. The subsidiary purchases HTM debt securities for cash. How does this transaction affect the subsidiary's exposure to remeasurement or translation gains or losses?


A) Remeasurement exposure changes
B) Translation exposure changes
C) Neither remeasurement nor translation exposure changes
D) Both remeasurement and translation exposures change

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