Chapter7 Foreign Currency & He dging Foreign Exchange Risk True or False 8 From a U.S. importer's and exporter's perspective, appreciation of the foreign currency will generate foreign exchange losses on payables created from its import purchase of goods from foreign sellers and foreign exchange gains on receivables created from its export sale of goods to foreign uversS. Multiple Choice U.S. based General Motors has a Japanese yen receivable resulting from its export sale of goods to Japan and a Brazilian real payable resulting from its import purchases from Brazil. General Motors recorded foreign exchange gains related to both its yen receivable and real payable. Did the foreign currencies increase or decrease in dollar value from the date of the transaction to the settlement date 9. YEN a. Increase b. Decrease c. Decrease d Increase REAL Increase Decrease Increase Decrease