If a foreign currency depreciates, exchange losses will occur when exposed .
A. receipts are greater than exposed payments B. payments are greater than exposed receipts C. receipts are greater than exposed net worth D. receipts and exposed payments are the same
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Answer:
If a foreign currency depreciates, exchange losses will occur when exposed receipts are greater than exposed payments.
Explanation:
Foreign exchange exposure is the possibility of a firm gaining or losing in the transaction due to changes in the exchange rates.
Currency depreciation takes place when the value of a country's currency falls with respect to other foreign reference currencies.
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