The Risk Exposure Resulting from the Possible Reduction in Terms

question 2

Multiple Choice

The risk exposure resulting from the possible reduction in terms of the domestic reporting foreign currency,of the discounted future cash flows generated from foreign investments or operations due to real changes in exchange rates is referred to as:

• A)Translation (accounting)exposure.
• B)Transaction exposure.
• C)Economic exposure.
• D)Business risk.

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Definitions:

Toxic Chemicals

Substances that can cause harm to humans, animals, plants, or the environment through their chemical composition and properties.

Three Mile Island

The site of a nuclear power plant in Pennsylvania, where a partial nuclear meltdown occurred in 1979, drawing widespread attention to nuclear safety issues.

Exxon Valdez

An oil tanker whose 1989 spill off the coast of Alaska caused one of the biggest environmental disasters in U.S. history.

Safeguards

Protective measures or mechanisms put in place to prevent harm, damage, or any other undesirable outcome.