The Three Primary Types of Exposure That Currency Risks Create

question 8

Multiple Choice

The three primary types of exposure that currency risks create for a firm are:

• A)transaction exposure,interest rate exposure,and translation exposure.
• B)profit/loss exposure,interest rate exposure,and economic exposure.
• C)economic exposure,financial exposure,and translation exposure.
• D)transaction exposure,economic exposure,and translation exposure.

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Definitions:

Weighted-Average Cost

A calculation used in inventory management and cost accounting that takes into account the varying costs of goods and determines an average cost for the goods sold.

Periodic Inventory System

An inventory system that updates inventory balances after a specific period, calculating COGS by a physical count.

Unit Cost

The calculated cost to produce one unit of product, taking into account all variable and fixed costs.

LIFO Inventory Method

"Last In, First Out," an inventory costing method where the last items purchased are the first ones sold, affecting the cost of goods sold and ending inventory value.