Currency risk is __________.
A) possible profit loss due to assets spread among multiple countries
B) possible profit from new laws and economic policies
C) possible profit loss due to fluctuations in foreign exchange rates
D) possible profit from nationalization of foreign assets

Question

Quizplus · Accepted Answer

Currency risk refers to the potential profit loss that may result from fluctuations in foreign exchange rates. This risk arises when assets are held in a currency other than the investor's home currency. Therefore, option C is the correct answer. Options A, B, and D do not accurately describe currency risk.

Currency Risk Is __________