单选题 Which of the following statements about currency risk is most accurate? Generally: A. if the home currency appreciates against the foreign currency, each foreign currency unit will be worth more in terms of the home currency. B. appreciation of the foreign currency is good for domestic investors who buy foreign securities. C. if the foreign currency appreciates, the foreign cash flow will be worth less for the domestic investor.

【正确答案】 B

【答案解析】If the home currency appreciates against the foreign (i. e. payment) currency, each foreign currency unit will be worth less in terms of the home currency. If the foreign currency appreciates, a given foreign cash flow will be worth more units of the home currency, thereby benefiting the domestic investor holding foreign securities.