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 short-run financial risk that arises from the need to buy or sell at uncertain prices or rates in the near future. Risk maximization and volatility maximization are not specific terms used in finance, while economic exposure and translation exposure refer to long-term financial risks.

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