Which One of These Statements Is Correct

Which one of these statements is correct?

A) Borrowing money in the country in which operations are located reduces long-run exchange rate risk.
B) Accounting translation gains are recorded on the income statement as other income.
C) In multidivisional firms,exchange rate risk should be managed at the division level.
D) The usage of forward rates can help reduce the long-run exposure to exchange rate risk.
E) Unexpected changes in economic conditions are classified as short-run exposure to exchange rate risk.

Correct Answer:

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