Transaction risk can usually be identified and hedged.

Name: Transaction risk can usually be identified and hedged.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Transaction risk refers to the risk of loss arising from exchange-rate fluctuations during the settlement of a transaction. This risk can be identified and hedged through various hedging techniques such as forward contracts, options, and futures. Therefore, the statement is true.

Transaction Risk Can Usually Be Identified and Hedged