Answer: higher for USD than GBP.

## Explanation Since EUR/USD represents the amount of EUR per 1 USD, and EUR/GBP represents the amount of EUR per 1 GBP, we can analyze the exchange rate relationships: - EUR/USD = EUR per USD - EUR/GBP = EUR per GBP For a US-based company with European operations, when the EUR strengthens relative to USD: - EUR/USD increases (more EUR per USD) - This means it takes more USD to buy the same amount of EUR - When translating European revenues (in EUR) to USD, the company gets fewer USD for each EUR of revenue - Therefore, reported revenues in USD decrease **The correct answer is C: higher for USD than GBP** because the EUR/USD exchange rate has a more direct impact on the company's USD-denominated earnings than EUR/GBP.

Author: LeetQuiz Editorial Team