The risk resulting from the effects of changes in foreign exchange rates on the translated value of a firm's accounts denominated in a given foreign currency is
A) economic exposure.
B) accounting exposure.
C) micro political risk.
D) macro political risk.

Question

Quizplus · Accepted Answer

The risk resulting from the effects of changes in foreign exchange rates on the translated value of a firm's accounts denominated in a given foreign currency is known as accounting exposure. It refers to the impact of currency fluctuations on a company's financial statements and therefore affects the reported financial results of the company.

The Risk Resulting from the Effects of Changes in Foreign