Currency risk exposure can be categorized as:

Question

Quizplus · Accepted Answer

Currency risk exposure can be categorized into transaction exposure (which arises from actual transactions involving foreign currency), economic exposure (which arises from the impact of currency fluctuations on the overall financial results and competitive position of a firm), and translation exposure (which arises from the conversion of foreign subsidiary financial statements into the reporting currency of the parent company). Therefore, all the given options (A, B, and C) are correct, making D the best choice.

Currency Risk Exposure Can Be Categorized As