It Is Conventional to Classify Foreign Currency Exposures into the Following

question 83

Multiple Choice

It is conventional to classify foreign currency exposures into the following types:

• A)economic exposure,transaction exposure,and translation exposure.
• B)economic exposure,noneconomic exposure,and political exposure.
• C)national exposure,international exposure,and trade exposure.
• D)conversion exposure,and exchange exposure.

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Definitions:

Business Judgment

refers to the decision-making process by corporate directors and officers that is presumed to be in the best interest of the company, protecting them from liability if the decisions are made in good faith and with reasonable care.

Counteroffer

A proposal made in response to an offer, signaling rejection of the initial offer and suggesting a new agreement for negotiation.

Acceptance

The agreement to the terms of an offer, contract, or proposal, thereby creating a binding legal obligation.

Roof

The structure covering the top of a building, designed to protect against weather, animals, and other external factors.