Billings,Inc.,a U.S.-based multinational,has just sold equipment to a French company for $1 million.The French company will pay for the order in 60 days.Billings is now exposed to which kind of risk

Question

Quizplus · Accepted Answer

The risk that Billings, Inc. is exposed to is transaction risk, which is the risk that arises from fluctuations in exchange rates between the time of the transaction and the time of payment. This type of risk can result in financial losses for the company.