Which of the following suggests that the foreign entity's functional currency is the parent's currency? a. Intercompany transaction volume is low. b. Debt is serviced through local operations. c. There is an active and primarily local market. d. Sale prices are influenced by international factors

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter10: Measuring Exposure To Exchange Rate Fluctuations
Section: Chapter Questions
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Which of the following suggests that the foreign entity's functional currency is the parent's currency?

a.

Intercompany transaction volume is low.

b.

Debt is serviced through local operations.

c.

There is an active and primarily local market.

d.

Sale prices are influenced by international factors.

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