Short-run financial risk arising from the need to buy or sell at uncertain prices or rates in the near future is called __________________.

Question

Quizplus · Accepted Answer

Transactions exposure refers to the risk companies face when they have outstanding financial obligations (such as foreign currency denominated payables or receivables) whose values can change due to fluctuations in exchange rates before the transactions are settled.

Short-Run Financial Risk Arising from the Need to Buy or Sell