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

Question

Quizplus · Accepted Answer

Economic exposure refers to the risk associated with the impact of changes in foreign exchange rates on a firm's financial performance and value. This can include changes in the value of assets, liabilities, and cash flows due to currency fluctuations. Macro and micro political risks refer to risks associated with changes in government policies and actions, while accounting exposure refers to the impact of foreign exchange rate changes on a firm's financial statements.

The Risk Resulting from the Effects of Changes in Foreign