Multiple Choice
Which of the following is true of economic risk?
A) It is the degree to which a firm's financial statements are exposed to exchange rate fluctuation.
B) It refers to the possibility that future cash transactions will be affected by changing exchange rates.
C) It refers to the possibility that a firm's present value of future cash flows will be affected by exchange rate fluctuations.
D) It is synonymous with translation risk.
Correct Answer:
Verified
Correct Answer:
Verified
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