Net operating exposure
A) is the gross finance exposure minus gross operating exposure.
B) is the difference between the parent company and its subsidiaries exposures.
C) is static in nature regardless of the macro-environment.
D) is the net result of all cash outflows and inflows by currency.

Question

Quizplus · Accepted Answer

Net operating exposure refers to the net result of all cash outflows and inflows by currency. It considers both the gross operating exposure and gross finance exposure, and is dynamic in nature as it changes with fluctuations in exchange rates and other macro-environmental factors. Therefore, option D is the correct choice. Options A, B, and C are not accurate definitions of net operating exposure.

Net Operating Exposure