An increase in the value of a foreign currency relative to the U.S. dollar ____ the conversion value of the foreign subsidiary's liabilities.

Question

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An increase in the value of a foreign currency relative to the U.S. dollar increases the conversion value of the foreign subsidiary's liabilities because the liabilities, when converted back to U.S. dollars, will be worth more due to the stronger foreign currency.

An Increase in the Value of a Foreign Currency Relative