7-38 Foreign exchange risk is that the value of assets and liabilities may change because of changes in the foreign exchange rate between two countries.

Question

Quizplus · Accepted Answer

Foreign exchange risk is the risk that arises from changes in the value of one currency against another. This can affect the value of assets and liabilities denominated in that currency, leading to potential financial losses or gains. Therefore, the statement is true.

7-38 Foreign Exchange Risk Is That the Value of Assets