Transaction Exposure and Operating Exposure Exist Because of Unexpected Changes

Transaction exposure and operating exposure exist because of unexpected changes in future cash flows. The difference between the two is that ________ exposure deals with cash flows already contracted for, while ________ exposure deals with future cash flows that might change because of changes in exchange rates.

A) transaction; operating
B) operating; transaction
C) operating; accounting
D) none of the above

Correct Answer:

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