Question: Question: How would you define transaction exposure ? How is it different from economic exposure? Based on Question Select all that apply to transaction exposure

Question: How would you definetransaction exposure? How is it different from economic

exposure?

Based on Question Select all that apply to transaction exposure

  • the potential that the firm's consolidated financial statements can be affected by changes in exchange rates
  • exposure when a firm faces contractual cash flows denominated in foreign currencies
  • Short -term
  • Long-term

the answer can have have multiple options.

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