Foreign exchange risk arises when:
A)business transactions are denominated in foreign currencies.
B)sales are made to customers in a foreign country.
C)goods or services are purchased from suppliers in a foreign country.
D)accounting reports are prepared in a foreign currency.

Question

Quizplus · Accepted Answer

Foreign exchange risk arises when business transactions are denominated in foreign currencies, as fluctuations in exchange rates can affect the value of these transactions.

Foreign Exchange Risk Arises When