What type of international risk exposure measures the change in present value of a firm resulting from changes in future operating cash flows caused by any unexpected change in exchange rates?
A) transaction exposure
B) accounting exposure
C) operating exposure
D) translation exposure

Question

Quizplus · Accepted Answer

Operating exposure measures the changes in the present value of a firm resulting from changes in future operating cash flows caused by any unexpected change in exchange rates. Transaction exposure measures the risk of loss from changes in exchange rates on a specific transaction or contract. Accounting exposure measures the impact of changes in exchange rates on the financial statements of a firm. Translation exposure measures the impact of changes in exchange rates on the financial statements of a subsidiary or affiliate of a firm.

What Type of International Risk Exposure Measures the Change in Present