Match each term in Column A with its related definition in Column B.

Column A

1. __________ Spot rate

2. __________ Currency appreciation

3. __________ Translation risk

4. __________ Transaction risk

5. __________ Exchange rate

Column B

a. The rate at which one currency can be traded for another currency.

b. The possibility that future cash transactions will be affected by changing exchange rates.

c. A month ago, $1 U.S. was worth 8.5 Mexican pesos. Today, $1 is worth 9.0 Mexican pesos. The U.S. dollar has undergone what?

d. The degree to which a firm's financial statements are exposed to exchange rate fluctuation.

e. The exchange rate of one currency for another for immediate delivery (today).