What is the term used to describe the possibility that a foreign currency will decrease in U.S. dollar value over the life of an asset such as Accounts Receivable?
A) Foreign exchange translation
B) Foreign exchange risk
C) Hedging
D) Foreign currency options

Question

Quizplus · Accepted Answer

The term used to describe the possibility that a foreign currency will decrease in U.S. dollar value over the life of an asset such as Accounts Receivable is foreign exchange risk. This refers to the potential financial loss that can occur due to fluctuations in exchange rates.

What Is the Term Used to Describe the Possibility That