________ includes obligations for the purchase or sale of goods and services at previously agreed prices and the borrowing or lending of funds in foreign currencies.
A) Economic exposure
B) Transaction exposure
C) Corporate financial exposure
D) Translation exposure

Question

Quizplus · Accepted Answer

Transaction exposure is the extent to which the income from individual transactions is affected by fluctuations in foreign exchange values. Transaction exposure includes obligations for the purchase or sale of goods and services at previously agreed prices and the borrowing or lending of funds in foreign currencies. Transaction exposure can be minimized by entering into forward contracts or swaps, or by leading and lagging payables and receivables.

________ Includes Obligations for the Purchase or Sale of Goods