What Is Meant by Translation Exposure

Multiple Choice

What is meant by translation exposure?

A) The long-run effect of changes in exchange rates on future prices, sales, and costs
B) The impact of currency exchange rate changes on the reported financial statements of a company
C) The extent to which a firm's future international earning power is affected by changes in exchange rates
D) The extent to which the income from individual transactions is affected by fluctuations in foreign exchange values
E) The obligations for the purchase or sale of goods and services at previously agreed prices