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Question
If a U.S. company exports to Canada and the sale is denominated in Canadian dollars, which of the following is true?
A) The U.S. company would report a gain if the U.S. dollar rises against the Canadian dollar.
B) The Canadian company would report a gain if the Canadian dollar falls against the U.S. dollar.
C) The U.S. company would report a loss if the Canadian dollar falls against the U.S. dollar.
D) Exports do not result in a gain or loss.
Answer
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