The Risk Exposure Resulting from the Translation of Foreign-Currency-Denominated Financial

question 6

Multiple Choice

The risk exposure resulting from the translation of foreign-currency-denominated financial risks is referred to as:

• A) translation (accounting) exposure.
• B) transaction exposure.
• C) economic exposure.
• D)business risk.

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Definitions:

Sensory Preconditioning

The initial pairing of two stimuli, which will enable one of the stimuli (CS2) to elicit the conditioned response (CR) without being paired with an unconditioned stimulus (UCS) if the other stimulus (CS1) is paired with UCS.

Extinction

The process by which a conditioned response diminishes and eventually disappears, as a result of the conditioned stimulus being repeatedly presented without the unconditioned stimulus.

Stimulus Narrowing

The restriction of a response to a limited number of situations.

Blocking

A learning phenomenon where a previously learned association prevents the acquisition of a new association with the same conditioned stimulus.