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:

Aggression

Any behavior intended to hurt someone, either physically or verbally.

Loneliness

A feeling of sadness or distress about being alone or not having company, reflecting a perceived gap between desired and actual social relationships.

Lonely People

Individuals who perceive themselves as lacking meaningful social connections or feeling isolated from others.

Conversational Partners

Individuals engaged in a dialogue or communication with each other, sharing and exchanging ideas, information, or feelings.