What Type of International Risk Exposure Measures the Change in Present

question 37

Multiple Choice

What type of international risk exposure measures the change in present value of a firm resulting from changes in future operating cash flows caused by any unexpected change in exchange rates?

• A) transaction exposure
• B) accounting exposure
• C) operating exposure
• D) translation exposure

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Definitions:

Experimental Group

The subset of participants in an experiment who are exposed to the independent variable.

Secondary Research

The analysis and interpretation of existing data or information that was collected by someone else, as opposed to primary research where data is collected firsthand.

Historical Documents

Original records and texts that pertain to past events, serving as evidence or sources of history.

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.