How can fluctuations in foreign exchange rates affect remittance costs?

Fluctuations in foreign exchange rates directly influence the amount of money that recipients receive from remittances. When the value of a currency changes, it can lead to variations in the equivalent amount converted through exchange. For instance, if the currency of the sender strengthens against the currency of the recipient, the recipient will receive more in their local currency for the same amount sent. Conversely, if the sender's currency weakens, the recipient will get less. These changes cause the overall costs and amounts involved in remittances to increase or decrease, depending on the fluctuations in the exchange rate. This dynamic directly impacts the value exchanged during remittance transactions, making option B the correct choice.

The other options do not accurately capture the relationship between exchange rate fluctuations and remittance costs. For example, stating that fluctuations have no effect suggests a static situation, which is not reflective of the reality in currency exchanges. Similarly, the idea that these fluctuations only affect immediate transactions overlooks the long-term impacts they have on the value of remittances over time. Additionally, while fluctuations may make transactions more or less expensive, the primary focus of the correct answer is on the impact on the amounts received or sent, thus making the changes in exchange rates a crucial factor in