Q.
1

a) Transaction exposure is inherent in all foreign currencies denominated contractual transactions
b) Transaction exposure relates to the change in accounting income and balance sheet statement caused by change in exchange rate
c) Economic exposure has an impact on the valuation of a firm
d) Operating exposure does not have any impact on the firm’s future operating revenues or future operating costs
Choose the correct answer from those below

  • A

    a) and b) only  

  • B

    b) and c) only

  • C

    b) and d) only  

  • D

    a), b), and c) only