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

Question

Quizplus · Accepted Answer

Economic exposure refers to the risk resulting from changes in foreign exchange rates on the value of a firm. Accounting exposure relates to the impact of currency fluctuations on a company's financial statements, while macro and micro political risks refer to broader political risks faced by a company at both the national and international levels.

The Risk Resulting from the Effects of Changes in Foreign