Transaction Exposure and Operating Exposure Exist Because of Unexpected Changes

question 22

Multiple Choice

Transaction exposure and operating exposure exist because of unexpected changes in future cash flows. The difference between the two is that ________ exposure deals with cash flows already contracted for, while ________ exposure deals with future cash flows that might change because of changes in exchange rates.

• A) transaction; operating
• B) operating; transaction
• C) operating; accounting
• D) none of the above

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Definitions:

IQ Tests

Tests standardized to evaluate cognitive abilities and human intelligence.

Criterion Validity

The extent to which a measure correlates with an independent criterion (standards) considered as the representing the same construct.

Construct Validity

The extent to which a test measures what it claims to measure, reflecting the accuracy of operationalizing a concept or construct.

Gifted Range

A classification in educational psychology referring to individuals, especially children, who demonstrate outstanding aptitude or competence in one or more domains.