A transaction exposure results in a foreign exchange gain or loss.

Name: A transaction exposure results in a foreign exchange gain or loss.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Transaction exposure refers to the risk faced by a company due to changes in exchange rates before a financial transaction is completed. It results in foreign exchange gains or losses depending on whether the exchange rate has moved in favor or against the company.

A Transaction Exposure Results in a Foreign Exchange Gain or Loss