The risk that a German investor who purchases British bonds will lose money when trying to convert bond interest payments made in pounds sterling into euros is called

Question

Quizplus · Accepted Answer

The risk of losing money due to fluctuations in foreign exchange rates is called foreign exchange rate risk. In this case, the German investor may face losses if the value of the pound sterling decreases against the euro at the time of conversion.

The Risk That a German Investor Who Purchases British Bonds