Which of the following statements are correct about economic exposure?
A) Transaction exposures to exchange rates, interest rates, and commodity prices over the short-to-medium run are an integral part of economic exposure.
B) Managing the strategic implications of all changing macroeconomic variables cannot be accomplished using only the financial markets.
C) Effective economic exposure management must be based on strategic operating decisions made mainly by marketing and production managers in response to expected changes in input and output prices, and the impact of changing demand for the company's products.
D) All of the statements above are correct.
E) Only statements b and c are correct.

Question

Quizplus · Accepted Answer

All the statements accurately describe aspects of economic exposure, including the integration of transaction exposures, the limitations of financial markets in managing macroeconomic changes, and the importance of strategic operating decisions.

Which of the Following Statements Are Correct About Economic Exposure