exposure. 1) Another name for operating exposure is A) economic B) competitive C) strategic D) all of the above 2) What type of international risk exposure measures the change in present value of a firm resulting from changes in future operating cash flows caused by any unexpected change in exchange rates? A) Transaction exposure. B) Accounting exposure. C) Operating exposure. D) Translation exposure. 3) cash flows arise from intracompany and intercompany receivables and payments while cash flows are payments for the use of loans and equity. A) Financing; operating B) Operating, financing C) Operating; accounting D) Accounting, financing 4) Which of the following is NOT an example of a financial cash flow? A) Parent invested equity capital. B) Interest on intrafirm lending. C) Payment for goods and services. D) Intra firm principal payments. 5) Which of the following is NOT an example of an operating cash flow? A) Management fees and distributed overhead. B) Royalties and license fees. C) Rent and lease payments. D) Dividend paid to parent company. 6) exposure is far more important for the long-run health of a business than changes caused by exposure. A) Operating; translation; transaction or B) Transaction; operating; translation C) Accounting; translation; transaction D) Translation; operating; transaction 7) Which of the following is probably NOT an advantage of foreign exchange risk management? A) The reduction of the variability of cash flows due to domestic business cycles. B) Increased availability of capital. C) Reduced cost of capital. D) All of the above are potential advantages of foreign exchange risk management. 8) If a car manufacturer produces and sells domestically, will its business be affected by exchange rate movements