Which of the following is concerned with the effect of exchange rate changes on individual transactions, most of which are short-term affairs that will be executed within a few weeks or months?

a. Purchasing power parity
b. Transaction exposure
c. Economic exposure
d. Translation exposure
e. Currency speculation

Question

rgred3872 rgred3872

05-08-2020
Business

contestada

Which of the following is concerned with the effect of exchange rate changes on individual transactions, most of which are short-term affairs that will be executed within a few weeks or months?

a. Purchasing power parity
b. Transaction exposure
c. Economic exposure
d. Translation exposure
e. Currency speculation

Respuesta :

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topeadeniran2 topeadeniran2 · Answer 1 · 2020-08-05T05:05:48+02:00

Answer: Transaction exposure

Explanation:

Transaction exposure, is a form of foreign exchange risk that is faced by the organizations that take part in international trade. It occurs when the fluctuation in exchange rate change a contracts value before it is settled.

It is concerned with the effect of exchange rate changes on individual transactions, most of which are short-term affairs that will be executed within a few weeks or months.