_____ is usually associated with transactions denominated in foreign currencies.

Question

Quizplus · Accepted Answer

Transaction risk refers to the risk of loss that arises from changes in exchange rates between the time a transaction is initiated and settled. This risk is usually associated with transactions denominated in foreign currencies. Reinvestment risk refers to the risk that future cash flows will not be reinvested at the same rate as the initial investment. Translation risk refers to the risk of loss that arises from translating financial statements or other financial documents from one currency to another. Economic risk refers to the risk of loss that arises from changes in economic conditions, such as interest rates, inflation, and political instability.

_____ Is Usually Associated with Transactions Denominated in Foreign Currencies