The Exchange Rate May Also Have an Indirect Effect on a Business

question 26

Multiple Choice

The exchange rate may also have an indirect effect on a business through its impact on competitors or suppliers. This form of exposure is known as:

• A) supplier exposure.
• B) economic exposure.
• C) competitor exposure.
• D) none of the above.

---

Definitions:

Compounded Options

Compounded options are not a standard financial term, suggesting a mix-up or confusion with terms related to compound interest or options trading. NO.

GICs

In Canada, Guaranteed Investment Certificates represent an investment option guaranteeing a fixed return rate over a certain time frame.

Annually

Happening annually or pertaining to a timeframe of one year.

Effective Interest Rate

The actual interest rate that a borrower pays or earns on a loan or investment, taking into account the effect of compounding.