Match each term in Column A with its related definition in Column B. Column A
1. Spot rate
2. Currency appreciation
3. Translation risk
4. Transaction risk
5. Exchange rate Column B
a. The rate at which one currency can be traded for another currency.
b. The possibility that future cash transactions will be affected by changing exchange rates.
c. A month ago, $1 U.S. was worth 8.5 Mexican pesos. Today, $1 is worth 9.0 Mexi- can pesos. The U.S. dollar has undergone what?
d. The degree to which a firm’s financial statements are exposed to exchange rate fluctuation.
e. The exchange rate of one currency for another for immediate delivery (today).