alleryStart learning →Importers and exporters are chiefly exposed to which type of risk?
ADividend payout risk
BMining output risk
CCrop failure risk
DExchange rate risk
Answer & Solution
Correct answer: D. Exchange rate risk
Their receipts and payments are in foreign currency, so exchange rate movements change the amounts they earn or pay.
Keep practising Hedge Accounting
Browse all Hedge Accounting questions for CA Final, or explore more Financialreporting topics.
Related questions
What does a farmer gain by selling forwards on his wheat?Forward contracts differ from futures in that forwards are what?A derivative loses 70 while the hedged item gains 100. Under the 80:125 rule, is the hedgeA hedging instrument gains 90 while the hedged item loses 100. Is the ratio within the 80:A dollar offset ratio of 0.8 to 1.25 equals which fractional range?The dollar offset method compares which two quantities?Stage 1 in the allowance reconciliation means which measure?Which IFRS 7 reconciliation stage covers credit-impaired financial assets?