1. The assets of a foreign subsidiary of a U.S. multinational corporation will experience a _____________________ if the foreign currency depreciates relative to the U.S. dollar, assuming that the dollar is the currency in which the parent company's assets are denominated.

translation gain

transaction loss

transaction gain

translation loss

2. In a forward currency contract, which of the following items are subject to negotiation?

the amount, the currency, and the maturity

the amount and the currency

the amount

the currency

the maturity