As opposed to transaction exposure,managing economic exposure involves developing a ________ solution.

Question

Quizplus · Accepted Answer

Economic exposure refers to the risk of changes in cash flows and value of assets and liabilities due to changes in exchange rates. Unlike transaction exposure, economic exposure is a long-term risk, and managing it necessitates a long-term strategy. As a result, the best alternative among the given options is choice B (long-term).

As Opposed to Transaction Exposure,managing Economic Exposure Involves Developing a ________