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Question 1) American Depository Receipt (ADRs) represent foreign stocks A) denominated in U.S. dollars that...

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Finance

Question 1) American Depository Receipt (ADRs) represent foreign stocks

A) denominated in U.S. dollars that trade on European stock exchanges.

B) denominated in U.S. dollars that trade on a U.S. stock exchange.

C) denominated in a foreign currency that trade on a U.S. stock exchange.

Question 2) The extent to which the value of the firm would be affected by unexpected changes in the exchange rate is

A) transaction exposure.

B) translation exposure.

C) economic exposure.

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