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

  • google app store apple app store
  • ✖

      Question

      An Indian exporter sells EUR 1 million receivables due

      in 6 months but leaves it unhedged. EUR/INR moves unfavorably. What exposure is it?
      A Transaction Correct Answer Incorrect Answer
      B Translation Correct Answer Incorrect Answer
      C Economic Correct Answer Incorrect Answer
      D All Correct Answer Incorrect Answer
      E None Correct Answer Incorrect Answer

      Solution

      Exchange rate exposure directly affecting contractual cash flows (receivables) is transaction exposure.

      Practice Next
      ask-question