Economic exposure represents any impact of exchange rate fluctuations on a firm's future cash flows and thus includes transaction exposure.

Question

Quizplus · Accepted Answer

Economic exposure refers to the impact of exchange rate fluctuations on a firm's future cash flows, which can arise from a variety of sources including transaction exposure, translation exposure, and strategic exposure. Therefore, the statement is true.

Economic Exposure Represents Any Impact of Exchange Rate Fluctuations on a Firm's