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ABC Company in India exports raw materials to XYZ Company in the USA. There is an outstanding invoice of INR 90,000,000 to be paid in two months. The USD-to-INR rate when the transaction was completed was 45. Now the USD-to-INR rate has changed from 45 to 40.
Jack, who is a treasury analyst at ABC Company, reviews the transactions and comes to a conclusion. Select two correct conclusions arrived upon by Jack. (Choose two.)
A. XYZ Company has a positive impact by this rate change.
B. XYZ Company has a negative impact by this rate change.
C. ABC Company has a positive impact by this rate change.
D. ABC Company is not impacted at all by this rate change.
Answer: B,D
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A. Option A
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D. Option D
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