Operating Exposure Differs from Transaction Exposure Because

question 36

Multiple Choice

Operating exposure differs from transaction exposure because:

• A)transaction exposure focuses on short-term and contractual cash flow while operating exposure considers all cash flow.
• B)operating exposure considers only changes in exchange rates while transaction exposure considers the underlying profit in the transaction plus changes in the exchange rate.
• C)transaction exposure considers only changes in exchange rates while operating exposure considers the underlying profit in the transaction plus changes in the exchange rate.
• D)operating exposure focuses on short-term and contractual cash flow while transaction exposure considers all cash flow.

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Definitions:

Chemical Reaction

A process that leads to the transformation of one set of chemical substances to another through the breaking and forming of chemical bonds.

Activation Energy

The minimum amount of energy that is required to initiate a chemical reaction, determining the reaction rate.

Enzymes

Biological molecules that act as catalysts, speeding up chemical reactions in living organisms without being consumed in the process.

Enzyme

Biomolecules that act as catalysts, speeding up specific biochemical reactions in the body without being consumed in the process.