If you are an American, and you agree to pay 100 Euro to another person in 6 months, who bears the currency fluctuation risk----you or the person you will pay? Why?

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter29: Exchange Rates And International Capital Flows
Section: Chapter Questions
Problem 23CTQ: Why would a nation dollarize—that is, adopt another countrys currency instead of having its own?
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If you are an American, and you agree to pay 100 Euro to another person in 6 months, who bears the currency fluctuation risk----you or the person you will pay? Why?

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