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      Question

      The risk that arises from adverse movements in exchange

      rates is termed as:
      A Credit Risk Correct Answer Incorrect Answer
      B Operational Risk Correct Answer Incorrect Answer
      C Market Risk Correct Answer Incorrect Answer
      D Translation Risk Correct Answer Incorrect Answer
      E Country Risk Correct Answer Incorrect Answer

      Solution

      The risk of loss due to changes in exchange rates is a subset of Market Risk. It is often specifically called Foreign Exchange Risk or Currency Risk.

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