ABC Company in India imports baking equipment from XYZ Company in the US A. There is an
outstanding invoice of $1,000,000 to be paid in two months. The USD-to-INR rate when the
transaction was done was 47.5. Now the USD-to-INR rate has changed from 47.5 to 40.5. 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 is not impacted at all by this rate change.
B.
XYZ Company has a positive impact by this rate change.
C.
ABC Company is not impacted at all by this rate change.
D.
ABC Company has a positive impact by this rate change.