Which of the following is NOT a source of transaction exposure?

Question

Quizplus · Accepted Answer

Transaction exposure involves changes in the actual cash flows that a company will receive or pay due to currency rate movements. It typically includes cash flows related to purchasing foreign assets or liabilities, contracts with future foreign currency cash flows, and current interest payments on foreign currency loans. The expected loss of foreign market share due to domestic currency appreciation, however, is related to economic exposure (or operating exposure), which deals with the impact of currency fluctuations on a company's future cash flows and market value, rather than the immediate cash flows involved in transaction exposure.

Which of the Following Is NOT a Source of Transaction