The effect on revenues and expenses from variations in the value of the U.S. dollar in terms of other currencies is called:
A) interest rate risk
B) exchange rate risk
C) purchasing power risk
D) financial risk

Question

Quizplus · Accepted Answer

The effect on revenues and expenses from variations in the value of the U.S. dollar in terms of other currencies is known as exchange rate risk. This is because changes in exchange rates can impact the value of foreign currencies, affecting the revenues and expenses of companies doing business in those currencies. Interest rate risk is the risk of changes in interest rates impacting investments or borrowing costs, purchasing power risk is the risk of inflation reducing the purchasing power of currency, and financial risk encompasses various types of risks related to financial investments or activities.

The Effect on Revenues and Expenses from Variations in the Value