Translation Exposure Measures

question 32

Multiple Choice

Translation exposure measures:

• A) changes in the value of outstanding financial obligations incurred prior to a change in exchange rates.
• B) the potential for an increase or decrease in the parent company's net worth and reported net income caused by a change in exchange rates since the last consolidation of international operations.
• C) an unexpected change in exchange rates impact on short run expected cash flows.
• D) none of the above