Borrowing or lending of funds in foreign currencies involves transaction exposure.

Name: Borrowing or lending of funds in foreign currencies involves transaction exposure.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Transaction exposure is the extent to which the income from individual transactions is affected by fluctuations in foreign exchange values.Such exposure includes obligations for the purchase or sale of goods and services at previously agreed prices and the borrowing or lending of funds in foreign currencies.

Borrowing or Lending of Funds in Foreign Currencies Involves Transaction