Fluctuating rates lead to varying levels of U.S. dollar-denominated cash flows.

Question

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Fluctuating rates refer to the risk of exchange rate movements, which can lead to varying levels of U.S. dollar-denominated cash flows. This is known as exchange rate risk. Political risk refers to the risk of political developments impacting investments, rollover risk refers to the risk of a borrower defaulting on a loan when it matures, and interest rate risk refers to the risk of changes in interest rates impacting investments or borrowing costs.

Fluctuating Rates Lead to Varying Levels of U