Which of the Following Is an Example of Economic Exposure

question 46

Multiple Choice

Which of the following is an example of economic exposure but not an example of transaction exposure?

• A) An increase in the dollar's value hurts a U.S. firm's domestic sales because foreign competitors are able to increase their sales to U.S. customers.
• B) An increase in the pound's value increases the U.S. firm's cost of British pound payables.
• C) A decrease in the peso's value decreases a U.S. firm's dollar value of peso receivables.
• D) A decrease in the Swiss franc's value decreases the dollar value of interest payments on a Swiss deposit sent to a U.S. firm by a Swiss bank.

---

Definitions:

Nodding Vigorously

An exaggerated form of nodding, often used to express strong agreement or enthusiasm.

Glazing Over

The act of losing interest or attention, often resulting in a lack of comprehension or engagement.

Systematic Comparison

The methodical analysis and evaluation of similarities and differences between items, concepts, or processes.

Job Requirements

The specific qualifications, skills, and experiences that an employer expects a candidate to possess for a particular position.