Since 1950,the Average Length of a Recession in the United

question 174

Multiple Choice

Since 1950,the average length of a recession in the United States has been

• A)such that recessions barely exist.
• B)less than a year.
• C)between 1 and 2 years.
• D)greater than 2 years.

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Definitions:

Economic Exposure

The extent to which a company's value is affected by unforeseen changes in exchange rates.

Transactions Exposure

The risk of exchange rate changes affecting the value of financial transactions denominated in a foreign currency.

Hedging

A strategy used to offset potential losses or gains that may be incurred by a companion investment.

Economic Exposure

The risk that a company's cash flow, foreign investments, or earnings may suffer as a result of fluctuating exchange rates.