_____,a category of foreign exchange risk,is concerned with the effect of exchange rate changes on individual transactions,most of which are short-term affairs that will be executed within a few weeks or months.

Question

Quizplus · Accepted Answer

Transaction exposure specifically deals with the impact of exchange rate fluctuations on individual transactions which are typically short term in nature. Purchasing power parity relates to the long-term impact of exchange rates on purchasing power, economic exposure deals with the overall impact of exchange rates on a company's operations, translation exposure deals with the impact of exchange rates on financial statements, and currency speculation is a strategy of attempting to profit from exchange rate fluctuations.

_____,A Category of Foreign Exchange Risk,is Concerned with the Effect