Firms that buy or sell internationally have ________ if any of the cash flows are denominated in foreign currency.
A)translation exposure
B)capital exposure
C)economic exposure
D)natural exposure
E)transaction exposure

Question

Quizplus · Accepted Answer

Firms that buy or sell internationally have transaction exposure if any of the cash flows are denominated in foreign currency. This refers to the risk of losses due to fluctuations in exchange rates between the time a transaction is agreed upon and the time it is settled.

Firms That Buy or Sell Internationally Have ________ If Any