The three basic types of risk associated with international cash flows are business and financial risks, inflation and foreign exchange risks, and political risks.

Question

Quizplus · Accepted Answer

This statement is true, as these three risks are widely recognized as the main types of risk involved in international cash flows. Business and financial risks refer to the potential for changes in market conditions or financial performance to impact cash flows, while inflation and foreign exchange risks relate to changes in the value of currencies and purchasing power. Political risks involve the possibility of changes in laws, regulations, or government actions that could affect cash flows.

The Three Basic Types of Risk Associated with International Cash