What is another term for "balance sheet exposure?"
A) Transaction exposure
B) Exchange exposure
C) Translation exposure
D) Negative exposure

Question

Quizplus · Accepted Answer

Balance sheet exposure refers to the potential risk associated with translating foreign currency denominated assets and liabilities into the reporting currency. This is also known as translation exposure. Transaction exposure refers to the potential risk associated with currency fluctuations affecting a specific transaction. Exchange exposure is another term for transaction exposure. Negative exposure is not a commonly used term in finance.

What Is Another Term for "Balance Sheet Exposure