The Possibility of Experiencing a Drop in Revenue or an Increase

question 47

Multiple Choice

The possibility of experiencing a drop in revenue or an increase in costs in an international transaction due to a change in foreign exchange rates is called

• A) foreign exchange risk.
• B) political risk.
• C) translation exposure.
• D) hedging risk.

---

Definitions:

Acute Dystonic Reaction

A sudden, involuntary muscle contraction, often a side effect of certain medications, leading to abnormal postures or movements.

Haloperidol

An antipsychotic medication used to treat schizophrenia, acute psychosis, and to control tics and vocal utterances of Tourette's syndrome.

Tardive Dyskinesia

A neurological disorder resulting in involuntary, repetitive body movements due to long-term antipsychotic medication use.

Idea of Reference

The false belief that casual incidents and external events have a particular and significant personal meaning, often seen in psychotic disorders.