RWB Corporation, a U.S.based company, sold inventory to a German company on June 5 for 12,000 euros, when $1 was equal to 1.20 euros.The company received 12,000 euros in payment on August 4 when $1 was equal to 1.25 euros.RWB's measurement currency is the U.S.dollar.RWB Corporation:

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RWB Corporation is exposed to an economic loss because the exchange rate changed unfavorably from 1.20 euros per dollar to 1.25 euros per dollar, resulting in fewer dollars received when the payment was made.