The risk resulting from the effects of changes in foreign exchange rates on the translated value of a firm's accounts denominated in a given foreign currency is ________.
A) economic exposure
B) macro political risk
C) accounting exposure
D) micro political risk

Question

Quizplus · Accepted Answer

This is referring to the risk stemming from changes in forex rates impact on the translated value of a firm's accounts in a foreign currency. This is known as accounting exposure.

The Risk Resulting from the Effects of Changes in Foreign