_______ is the risk that arises from the effects of foreign exchange rates on the foreign cash flows of a corporation's financial accounts,denominated in a given foreign currency.
A) Economic exposure
B) Competitive exposure
C) Macro-political risk
D) Transaction exposure

Question

Quizplus · Accepted Answer

Transaction exposure is the risk that a company faces due to the fluctuation in foreign exchange rates while conducting transactions denominated in a foreign currency. It affects the value of a company's financial accounts and can lead to gains or losses. Other options such as economic exposure, competitive exposure, and macro-political risk are not related to foreign currency transactions directly.

_______ Is the Risk That Arises from the Effects of Foreign