What Is "Asset Exposure" to Foreign Exchange Risk

question 36

Multiple Choice

What is "asset exposure" to foreign exchange risk?

• A)the possibility that an asset denominated in U.S.dollars will decline in value because of changes in the foreign exchange rate
• B)the possibility that an asset denominated in a foreign currency will change in value because of a change in the foreign exchange rate
• C)the loss resulting from an import purchase when a foreign currency appreciates
• D)the loss resulting from an import purchase when a foreign currency depreciates

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Definitions:

CVA

Cerebrovascular Accident, commonly known as a stroke, occurs when blood flow to a part of the brain is suddenly interrupted or reduced.

Thermoreceptors

Specialized sensory nerve cells that detect changes in temperature and are responsible for sensations of hot and cold.

Combining Form

A form of a word, often a prefix or suffix, that is used to create new words when combined with other words or forms.