Match each term in Column A with its related definition in Column B. Column A 1. Spot rate 2….

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).