___________________ is the component of operating exposure that involves the conversion of a firm's foreign cash flow into the home country currency of the firm.
A)Operating impact
B)Transaction exposure
C)Conversion impact
D)Currency impact

Question

Quizplus · Accepted Answer

Conversion impact refers to the component of operating exposure related to the conversion of foreign currency cash flow into the home country currency. Transaction exposure relates to the risk of loss from an actual foreign currency transaction, while operating impact and currency impact are not specific components of operating exposure.

___________________ Is the Component of Operating Exposure That Involves the Conversion