Foreign-Currency Transaction Losses can be avoided if international transactions are settled in U.S.dollars instead of the foreign currency.

Question

Quizplus · Accepted Answer

Foreign-Currency Transaction Losses occur due to fluctuations in exchange rates. If international transactions are settled in U.S. dollars, the risk of exchange rate fluctuations is eliminated, thus avoiding Foreign-Currency Transaction Losses.

Foreign-Currency Transaction Losses Can Be Avoided If International Transactions Are