Which of the Following Are True Statements

question 26

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 options