You run a hotel in Belgium that is owned by an American company. If the Euro strengthens against the dollar, your converted dollar profits will be
A)higher.
B)lower.
C)the same because we report our profits in Euros.
D)can't tell from information given.

Question

Quizplus · Accepted Answer

When the Euro strengthens against the dollar, the value of profits in Euros, when converted to dollars, increases. This is because each Euro will convert to more dollars than before the strengthening.

You Run a Hotel in Belgium That Is Owned by an American