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.
ABC Company is not impacted at all by this rate change.
C.
ABC Company has a positive impact by this rate change.
D.
XYZ Company has a negative impact by this rate change.