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3 years ago

What type of exposure relates to exposure to potential financial loss as a result of trading in another currency?

Business

1 answer:

andrezito [222]3 years ago

3 0

Answer:

The correct answer is foreign exchange risk.

Explanation:

Currency risk is the positive or negative difference that arises from changes in the exchange rate over time. A company that carries out operations in another currency is exposed to exchange rate movements, therefore it must seek to compensate them strategically.

Whenever a company carries out a transaction in foreign currency, whether it is for the importation of inputs or products, or the export of goods, with a waiting period between collection and payment, there is a risk of loss or gain that may affect to your finances and your profitability.

As the exchange market is volatile, a company that does not anticipate changes in the exchange rate may run the risk of incurring losses that affect its financial planning and cash flows.

Therefore, it is advisable to be prudent in your purchases of raw materials or finished products and when contracting financing in other denominations.

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g Banks advertise Group of answer choices the real interest rate, which is how fast the dollar value of savings grows. the real

Serhud [2]

Answer: The Nominal Interest rate, which is how fast the dollar value of savings grows

Explanation:

Banks advertise the Nominal Interest rate. This is the rate that measures purely, how much return is received or paid if one lends out money or borrows money respectively.

It is therefore the value at which savings grow.

It is not adjusted for inflation yet but when adjusted is called the REAL INTEREST RATE.

It is important to note that when Banks advertise the Nominal rate, it is not yet adjusted for fees or the compounding of interest.

3 0

3 years ago

A music teacher asked her students to set a really hard goal, such as increasing their practice time by 10 hours per week, which

PilotLPTM [1.2K]

The answer is Stretch Goal. It is also called a Stretch Target, it is <span>a high and difficult level of success that a student must achieve if they are to be considered to be doing their job in a satisfactory way. Practicing 10 hours a week would cause the students to reach beyond what they think is possible.</span>

5 0

2 years ago

On July 1, Goblette Company sold some machinery to another company. The two companies entered into an installment sales contract

malfutka [58]

Answer:

The value of all future payments discounted by the interest rate

Explanation:

Since the purchase of the asset is by installments to be paid in the future. The present value to be recognized is the sum of the future payments discounted at the predetermined interest rate.

The first payment due now will not have to be discounted but future payments will have to be discounted to ascertain the present value of the asset to be recognized in the balance sheet.

7 0

3 years ago

Read 2 more answers

Axcel software began a new development project in 2020. the project reached technological feasibility on june 30, 2021, and was

Neporo4naja [7]

The amortization of the software development costs for the year 2022 would be $5,60,000.

<h3>What is Amortization?</h3>

Amortization is the process of repaying a debt in equal amounts over time. A portion of each payment is applied to the loan principal, while the remainder is applied to interest.

When a mortgage loan is amortized, the amount paid toward principal begins small and steadily increases month after month.

<u>Computation</u>:

According to the given information,

The revenues of 2022 from the sale of new software(Sales Revenue)= $4,000,000.

Anticipated Additional Revenues = $6,000,000

Then, the total revenue is :

$\text{Total Sales} = \text{Sales Revenue + AAR}\\\\\text{Total Sales} = \$4,000,000+ \$6,000,000\\\\\text{Total Sales} = \$10,000,000$

Then, the percentage of Total Revenue would be:

$\text{Percentage of Total Revenue} = \dfrac{\text{Sales Revenue}}{\text{Tota Revenue}}\\\\\text{Percentage of Total Revenue} = \dfrac{\$4,000,000}{\$10,000,000}\\\\\text{Percentage of Total Revenue} = 40\%$

Then, the Cost incurred from June to the date of product release =

Therefore, the amortization of the software development costs for the year 2022:

$=\text{Cost incurred to product release} \times \text{percentage of Total Revenue}\\\\=\$1,400,000 \times 40\% \\\\=\$5,60,000$

Learn more about the Amortization, refer to:

brainly.com/question/24232991

$SPJ1

5 0

1 year ago

Which of the following should you include in e-mails?

saul85 [17]

I would say letter “E” but the government already knows all of our personal information, so whats the point... probably being watched threw your computer/phone camera rn

7 0

3 years ago