The Source of Translation Exposure

question 23

Multiple Choice

The source of translation exposure

• A)is a mismatch of net assets and net liabilities denominated in the same currency.
• B)is a mismatch of net assets and net liabilities denominated in the different currencies.
• C)is a mismatch of current assets and current liabilities denominated in different currencies.
• D)none of the options

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Definitions:

Direct Foreign Investment

An individual or company from one nation investing in business interests or assets in a different country, which includes starting up operations or buying business holdings.

International Finance Corporation

A member of the World Bank Group focused on private-sector development in less developed countries.

Infrastructure Loans

Financial borrowing intended for the construction, improvement, or maintenance of essential public works like roads, bridges, and utilities.

Tariffs

Taxes imposed on imported goods, typically to protect domestic industries, raise revenue, or regulate trade.