_____ risk is the probability that changes in exchange rates affect the value of a firm and its financial obligations.
A) Currency
B) Foreign
C) Domestic
D) Country

Question

Quizplus · Accepted Answer

Currency risk, also known as exchange rate risk, refers to the potential for financial losses due to fluctuations in the exchange rate between two currencies. It affects the value of a firm's financial obligations and assets when they are denominated in a foreign currency.

_____ Risk Is the Probability That Changes in Exchange Rates