________ is the currency risk that results from exchange-rate fluctuations affecting the pricing of products, the cost of inputs, and the value of foreign investments.
A) Translation exposure
B) Economic or operating exposure
C) Transaction exposure
D) Interoceptive exposure

Question

Quizplus · Accepted Answer

Economic or operating exposure refers to the risk that a company's market value can be affected by currency fluctuations, impacting not just transactions but also the competitive position and future cash flows by altering the cost of inputs and pricing of products internationally.

________ Is the Currency Risk That Results from Exchange-Rate Fluctuations