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Basic Question 1 of 7
Which one of the following translation methods has as its basic assumption the premise that a company's net investment in a foreign operation is exposed to foreign exchange risk?
B. average rate method.
C. temporal method.
A. all-current method.
B. average rate method.
C. temporal method.
User Contributed Comments 2
| User | Comment |
|---|---|
| TreasureH | Net investment includes monetary and nonmonetary assets. |
| quanttrader | whereas temporal method is only concerned with monetary assets |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
analyze how the current rate method and the temporal method affect financial statements and ratios;
CFA® 2026 Level II Curriculum, Volume 2, Module 12.