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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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