Which of the Following Does Not Represent an Exchange Risk

question 39

Multiple Choice

Which of the following does not represent an exchange risk on an exposed position to a company transacting business with a foreign vendor?​

• A)​transaction is denominated in foreign currency, settled at a future date
• B)​firm commitment to purchase inventory to be paid for in foreign currency
• C)​Forecasted foreign currency transaction with a high probability of occurrence
• D)​firm commitment to purchase inventory denominated in U.S.dollars

---

Definitions:

Physiological Arousal

Refers to the body's response to stimuli, resulting in increased physical activity and alertness, including faster heartbeat and breathing.

Spinal Cord Injury

A traumatic event causing damage to the spinal cord, potentially leading to a loss of function or mobility below the site of the injury.

Feelings of Anger

An emotional state characterized by strong discomfort and hostility towards someone or something perceived as a threat or wrongdoing.

Intensity

The degree of strength, force, or concentration of an activity, emotion, or property.