Currency risk exposure can be categorized as
A)transaction exposure.
B)economic exposure.
C)Neither of these options are correct.
D)Both transaction and economic exposure are correct.

Question

Quizplus · Accepted Answer

Currency risk exposure can be categorized into transaction exposure, which is the risk of losses due to fluctuations in exchange rates on a specific transaction, and economic exposure, which is the risk of losses due to fluctuations in exchange rates affecting the overall market value of a company's assets and liabilities. Therefore, both transaction and economic exposure are correct categories of currency risk exposure.

Currency Risk Exposure Can Be Categorized as