____ exposure is the degree to which the value of contractual transactions can be affected by exchange rate fluctuations.
A) Transaction
B) Economic
C) Translation
D) None of the above

Question

Quizplus · Accepted Answer

Transaction exposure is specifically related to the impact of exchange rate fluctuations on the value of contractual transactions such as international sales or purchases, which are denominated in a foreign currency. Economic exposure is more broad and refers to the impact of exchange rates on a company's overall competitiveness and profitability. Translation exposure relates to the impact of exchange rates on the presentation of financial statements for companies with foreign operations. Therefore, option A) is the best choice for the given question.

____ Exposure Is the Degree to Which the Value of Contractual