Which of the following is not a source of foreign exchange risk?
A)Trading foreign currencies.
B)Making domestic-currency loans to foreign corporations.
C)Buying foreign-issued securities.
D)Issuing foreign currency-denominated debt.

Question

Quizplus · Accepted Answer

Making domestic-currency loans to foreign corporations does not involve exposure to foreign exchange risk as the loan is made in the domestic currency. Trading foreign currencies, buying foreign-issued securities, and issuing foreign currency-denominated debt all involve exposure to foreign exchange risk.

Which of the Following Is Not a Source of Foreign