The overall impact of foreign exchange rate fluctuations on a firm's value is called

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Quizplus · Accepted Answer

Economic exposure refers to the overall impact of foreign exchange rate fluctuations on a firm's value. Interest rate risk refers to the risk of changes in interest rates affecting a firm's financial performance, while transaction exposure refers to the risk of losses from foreign exchange fluctuations in specific transactions. None of these fully capture the broad impact of exchange rates on a firm's value.

The Overall Impact of Foreign Exchange Rate Fluctuations on a Firm's