________ exposure and ________ exposure are "true exposures" in the financial sense.
A)Translation; economic
B)Transaction; economic
C)Translation; transaction
D)Capital; natural
E)Natural; economic

Question

Quizplus · Accepted Answer

Transaction exposure refers to the risk associated with fluctuations in exchange rates that may occur during a transaction. Economic exposure refers to the risk associated with changes in exchange rates that may affect future cash flows of a firm. Both of them are considered "true exposures" in the financial sense. The other choices are not relevant to the given context.

________ Exposure and ________ Exposure Are "True Exposures" in the Financial

Exposure and Exposure Are "True Exposures" in the Financial