Transaction Exposure and Operating Exposure Exist Because of Unexpected Changes

question 22

Multiple Choice

Transaction exposure and operating exposure exist because of unexpected changes in future cash flows. The difference between the two is that ________ exposure deals with cash flows already contracted for, while ________ exposure deals with future cash flows that might change because of changes in exchange rates.

• A) transaction; operating
• B) operating; transaction
• C) operating; accounting
• D) none of the above

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Definitions:

Praised

Recognition or expression of approval for someone's work or achievements.

Recognition

Acknowledgment or appreciation of an individual's achievements or contributions, often used as a motivational tool in organizational settings.

Human Need

Fundamental requirements that are considered essential for psychological and physical well-being of humans.

High Self-efficacy

The belief in one's own ability to successfully accomplish tasks and challenges.