Currency risk exposure can be categorized as
A)transaction exposure.
B)economic exposure.
C)None of these options are correct.
D)All of these options are correct.

Question

Quizplus · Accepted Answer

Both transaction exposure and economic exposure are categories of currency risk exposure. Transaction exposure refers to the risk of financial loss due to fluctuations in exchange rates during the settlement of a transaction involving a foreign currency. Economic exposure refers to the risk of financial loss due to changes in exchange rates that affect the value of a company's future cash flows, investments, or operations. Therefore, both A and B are correct and the answer is D.

Currency Risk Exposure Can Be Categorized as