Which of the following is NOT an example of financial risk exposure for a company?
A) When interest rates increase and a larger proportion of mortgage payments are in default for a bank
B) When a local currency decreases for an exporter
C) When a company has taken out a short-term loan and floating interest rates increase
D) When interest rates increase for a highly geared company

Question

Quizplus · Accepted Answer

When a local currency decreases for an exporter, it can actually be beneficial as it makes the exporter's goods cheaper and more competitive in the global market, potentially increasing sales and revenues. This is not typically considered a financial risk exposure but rather a potential advantage.

Which of the Following Is NOT an Example of Financial