____ exposure is the degree to which the value of contractual transactions can be affected by exchange rate fluctuations.
A) Transaction
B) Economic
C) Translation
D) None of the above

Question

Quizplus · Accepted Answer

Transaction exposure refers to the risk that a company's contractual transactions, such as imports, exports, and foreign investments, will be affected by changes in exchange rates. Economic exposure refers to the potential impact of exchange rate fluctuations on a company's future cash flows and competitiveness, while translation exposure refers to the impact of exchange rate changes on the valuation of foreign assets and liabilities.

____ Exposure Is the Degree to Which the Value of Contractual