Questions: QUESTION 1 A French company sells goods to a foreign customer whose currency is depreciating against the euro. Which of the following will the company most likely experience when completing the sale? The company will recelve fewer euros if the sales price was expressed in euros originally. The company will recelve more euros if the sales price was expressed in euros originally. The company will recelve more euros if the sales price was expressed in the buyer's currency. The company will recelve fewer euros if the sales price was expressed in the buyer's currency.

The answer is: The company will receive fewer euros if the sales price was expressed in the buyer's currency.

This option is incorrect. If the sales price was expressed in euros originally, the amount of euros the company receives would not change due to currency depreciation. The foreign customer would bear the exchange rate risk and would need to pay more of their depreciating currency to meet the euro-denominated price.

This option is also incorrect for the same reason as Option 1. The amount of euros received remains constant if the price is expressed in euros, regardless of the foreign currency's depreciation.

This option is incorrect. If the sales price is expressed in the buyer's currency and that currency is depreciating, the value of the payment in euros will decrease, not increase.

This option is correct. When the sales price is expressed in the buyer's currency and that currency depreciates against the euro, the amount of euros the company receives will be less when the foreign currency is converted to euros. This is because the depreciating currency will have less value in terms of euros.