Transaction exposure reflects:
A) the exposure of a firm's international contractual transactions to exchange rate fluctuations.
B) the exposure of a firm's local currency value to transactions between foreign exchange traders.
C) the exposure of a firm's financial statements to exchange rate fluctuations.
D) the exposure of a firm's cash flows to exchange rate fluctuations.

Question

Quizplus · Accepted Answer

Transaction exposure refers to the risk that a company's international contractual transactions will be affected by changes in exchange rates, impacting the value of cash flows from these transactions.

Transaction Exposure Reflects