Currency risk can best be defined as the risk that occurs when ________.
A) currency values remain constant for prolonged periods
B) one currency changes in relation to another currency
C) buyers and sellers disagree over which currency to use
D) fluctuations in the stock market affect all exchange rates

Question

Quizplus · Accepted Answer

Currency risk, also known as exchange rate risk, occurs when the value of one currency changes in relation to another. This can affect the value of investments, transactions, and earnings when they are converted from one currency to another.

Currency Risk Can Best Be Defined as the Risk That