Foreign exchange risk may relate to:
A) recognised assets and liabilities.
B) unrecognised firm commitments.
C) planned foreign currency transactions.
D) all of the above.

Question

Quizplus · Accepted Answer

Foreign exchange risk can relate to all of the above - assets and liabilities on the balance sheet, unrecognised firm commitments, and planned foreign currency transactions that have not yet occurred. Therefore, all of these must be considered when managing foreign exchange risk.

Foreign Exchange Risk May Relate To