Transaction Exposure and Operating Exposure Differ in That Transaction Exposure

Multiple Choice

Transaction exposure and operating exposure differ in that transaction exposure:

A) derives from a company's foreign-currency-denominated cash flows, and operating exposure applies to the impact of exchange rate volatility on the value of the assets and liabilities of a company's foreign operations.
B) derives from a company's foreign-currency-denominated cash flows, and operating exposure applies to the impact of exchange rate volatility on future cash flows.
C) derives from a company's foreign-currency-denominated cash flows, and operating exposure applies to the impact of exchange rate volatility on foreign operations.
D) applies to the impact of exchange rate volatility on future cash flows, and operating exposure applies to the impact of exchange rate volatility on foreign operations.