The currency losses or gains that can result from translating values of assets or liabilities and payables or receivable arising from investments abroad from one currency to another are referred to as translation risks.
Correct Answer:
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Q20: Exposure netting is the acceptance of closed
Q21: Translation risks involve shorter time periods than
Q22: The money market hedge
A) is accomplished by
Q23: The forward market hedge
A) is of limited
Q24: Hedging for currency risk is only for
Q26: Currency fluctuations create risks categorized as
A) transaction,
Q27: Transaction exposure
A) is a credit type risk.
B)
Q28: A forward market hedge
A) is accomplished by
Q29: An advantage of exposure/multilateral netting is that
Q30: A currency option hedge
A) is of limited
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