1. The assets of a foreign subsidiary of a U.S. multinational corporation will experience a _____________________ if the foreign currency depreciates relative to the U.S. dollar, assuming that the dollar is the currency in which the parent company's assets are denominated.
translation gain
transaction loss
transaction gain
translation loss
2. In a forward currency contract, which of the following items are subject to negotiation?
the amount, the currency, and the maturity
the amount and the currency
the amount
the currency
the maturity