$1.$

$$Functional currency consideration which factor is NOT a consideration when a company's functional currency is different from the local currency of its fixed assets?

the firm's capital structure

accounting for translation exposure

exchange rate movements

economic conditions of the local market

$2.$

$$how does diversification help in managing economic exposure $?$

by spreading risk across different markets and currencies

by increasing the company's debt$-$to$-$equity ratio

by reducing the overall market demand

by concentrating risk in a single currency