Which of the following is NOT a source of foreign exchange risk?
A)Trading foreign currencies.
B)Making domestic-currency loans to foreign corporations.
C)Buying foreign-issued securities.
D)Issuing foreign currency-denominated debt.

Question

Quizplus · Accepted Answer

Making domestic-currency loans to foreign corporations does not expose a company to foreign exchange risk because the loan is made in the domestic currency, eliminating the risk of currency value fluctuations.

Which of the Following Is NOT a Source of Foreign