Which of the events results in transaction exposure

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Reference no: EM131933678

1. OHM Semiconductors offers a trade discount of 2/10, net 20 to all its customers invoiced in EUR. If a Dutch customer receives an EUR 150,000 invoice and pays on day 2, how much should it pay OHM?

A. EUR 135,000

B. EUR 147,000

C. EUR 150,000

D. EUR 165,000

2. For a U.S. company, which of the following events results in transaction exposure?

A. Selling AUD 812,000 worth of widgets to an Australian customer for cash

B. Making a deposit of USD 1.25 million in company's checking account in a Japanese bank

C. Selling USD 300 million worth of bonds to a German insurance company

D. Buying GBP 540,000 worth of supplies on credit from a British company

E. Selling its merchandise to a Brazilian company for USD 880,000

Reference no: EM131933678

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