Question: Transaction risk differs from economic risk in that: You cannot hedge transaction risk, but can hedge economic risk Transaction risk is real while economic risk

Transaction risk differs from economic risk in that:

You cannot hedge transaction risk, but can hedge economic risk

Transaction risk is real while economic risk is theoretical

Economic risk could require an adjustment to the business model while transaction risk is temporary

Economic risk covers inflation and GDP growth while transaction risk is the chance a buyer won't pay its bill

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