__________ is the risk that changes in the exchange rate will cause the dollar value of foreign exchange or foreign financial assets to fall.
A)Default risk
B)Exchange rate risk
C)Interest rate risk
D)Liquidity risk

Question

Quizplus · Accepted Answer

Exchange rate risk is the risk that changes in the exchange rate will result in the loss of value of foreign assets when converted into the domestic currency. This risk arises due to fluctuations in currency exchange rates and can affect both financial assets (such as stocks, bonds, and mutual funds) and physical assets (such as property and commodities) held by investors.

__________ Is the Risk That Changes in the Exchange Rate