Which of the Following Is an Example of Economic Exposure

question 6

Multiple Choice

Which of the following is an example of economic exposure but not an example of transaction exposure?

• A) An increase in the dollar's value hurts a U.S. firm's domestic sales because foreign competitors are able to increase their sales to U.S. customers.
• B) An increase in the pound's value increases the U.S. firm's cost of British pound payables.
• C) A decrease in the peso's value decreases a U.S. firm's dollar value of peso receivables.
• D) A decrease in the Swiss franc's value decreases the dollar value of interest payments on a Swiss deposit sent to a U.S. firm by a Swiss bank.

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Definitions:

Lacunae

Small cavities in bone or cartilage tissue that house osteocytes or chondrocytes, respectively, essential for tissue health and maintenance.

Canaliculi

Small, channel-like structures in bone tissue that allow for the distribution of nutrients and communication among osteocytes.

Periosteum

The bones are wrapped in a heavy connective tissue layer, filled with blood vessels, except at joint areas.

Trabeculae

The network of irregularly shaped bony plates or struts within spongy bone, helping to distribute stress and support weight.