Currency risk is based on what assumption?
A) Firms that do not continuously innovate will lose market share.
B) Values of foreign currencies continually rise and fall in most countries.
C) Changing product lines by reacting to every current trend may alienate the customer base.
D) The value of one dollar today is greater than the value of one dollar to be received one year from now.
E) The U.S. stock market fluctuates daily.

Question

Quizplus · Accepted Answer

Currency risk is the potential loss that can occur from fluctuations in exchange rates. This assumes that values of foreign currencies continually rise and fall in most countries, which is the basis of currency risk.

Currency Risk Is Based on What Assumption