Managing economic exposure is generally perceived to be __________ managing transaction exposure.

Question

Quizplus · Accepted Answer

Managing economic exposure involves dealing with potential long-term risks and uncertainties related to macroeconomic factors such as inflation, interest rates, and exchange rate fluctuations. These factors are usually harder to predict and manage than transaction exposure, which deals with short-term risks related to individual transactions. Therefore, managing economic exposure is generally perceived to be more difficult than managing transaction exposure.

Managing Economic Exposure Is Generally Perceived to Be __________ Managing