14-35 Which of the following is NOT a source of foreign exchange risk?
A)Trading foreign currencies.
B)Making domestic-currency loans to foreign corporations.
C)Buying foreign-issued securities.
D)Issuing foreign currency-denominated debt.
E)Making foreign currency loans.

Question

Quizplus · Accepted Answer

Making domestic-currency loans to foreign corporations does not involve foreign currency transactions, thus it does not expose the lender to foreign exchange risk.

14-35 Which of the Following Is NOT a Source of Foreign