ANSWER = b
Work = All you have to do is process of elimination to eliminate the ones that don’t make sense.
Answer:
Option A The impact of a change in the local currency on inflow and outflow variables can sometimes be indirect and therefore different from what is expected.
Explanation:
The reason is that the changes in the currency exchange rate in which the company receives the payment and is also not a home currency, such risk exposure is known as economic exposure. So the only option that correct here is option A.
Option B is incorrect because depreciation is non cash item and it is not exposed to currency fluctuations.
Option C and D are also incorrect because domestic firms don't face any economic exposure.
The answer is...
Liabilities
I don't believe that is true
D. Not have a downpayment.
Due to the nature of the mortgage.