Which of the Following Statements Is Incorrect

Which of the following statements is incorrect?

A) Transaction exposure represents only the exchange rate risk when converting net foreign cash inflows to U.S. dollars or when purchasing foreign currencies to send payments.
B) Economic exposure represents any impact of exchange rate fluctuations on a firm's future cash flows.
C) Firms can simply focus on hedging their foreign currency payables and/or receivables to hedge economic exposure.
D) The management of economic exposure tends to serve as a long-term solution rather than just a short-term solution.