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

question 17

Multiple Choice

The exposure resulting from the translation of foreign-currency-denominated financial statements into Canadian dollars is referred to as:

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

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Definitions:

Conditioned Response

A reflex developed through training in response to a stimulus that is typically neutral.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without any need for prior learning.

Unconditioned Stimulus

An innate trigger that spontaneously and effortlessly evokes a reaction without the need for previous learning.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, comes to trigger a conditioned response.