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​Which of the Following Is True of an Exchange Loss

Question 119

Multiple Choice

​Which of the following is true of an exchange loss?


A) ​It is a loss on the exchange of one currency for another due to depreciation of the home currency.
B) ​It is a loss on the exchange of one currency for another due to depreciation of the foreign currency.
C) ​An exchange loss occurs when the currency of the home country strengthens relative to the foreign country's currency.
D) ​An exchange loss is not a practical scenario.

Correct Answer:

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