📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    Question

    The risk of loss due to adverse changes in exchange

    rates is known as:
    A Credit Risk Correct Answer Incorrect Answer
    B Transaction Risk Correct Answer Incorrect Answer
    C Operational Risk Correct Answer Incorrect Answer
    D Liquidity Risk Correct Answer Incorrect Answer

    Solution

    Transaction risk is the exchange rate risk associated with the time delay between entering into a contract and settling it. It affects cash flows.

    Practice Next
    ask-question