____________________ refers to the sensitivity of changes in the real domestic-currency value of assets, liabilities, or operating incomes to unanticipated changes in exchange rates.
A) Foreign exchange exposure
B) Foreign exchange risk
C) A parallel loan
D) GDP (Gross Domestic Product)

Question

Quizplus · Accepted Answer

Foreign exchange exposure refers to the sensitivity of changes in the real domestic-currency value of assets, liabilities, or operating incomes to unanticipated changes in exchange rates. Foreign exchange risk and parallel loans are related to foreign exchange exposure, but do not specifically refer to the sensitivity of changes in the real domestic-currency value of assets, liabilities, or operating incomes. GDP is unrelated to foreign exchange exposure.

____________________ Refers to the Sensitivity of Changes in the Real