Which of the Following Are True Statements

question 71

Multiple Choice

Which of the following are true statements?

• A)Since translation exposure does not have an immediate direct effect on operating cash flows, its control is relatively unimportant in comparison to transaction exposure, which involves potential real cash flow losses.
• B)Since it is generally not possible to eliminate both translation exposure and transaction exposure, it is more logical to effectively manage transaction exposure.
• C)Two ways to control translation risk are: a balance sheet hedge and a derivatives "hedge."
• D)All of the above are true statements