Currency exposures are classified as translation, economic and:
ATransmission
BTranslation fee
CTransaction
DTransition
Answer & Solution
Correct answer: C. Transaction
1. Three categories are named for exchange rate risk.
2. Two of them are translation and economic.
3. The third is transaction risk.
_Source: OpenStax Principles of Finance 2e, Chapter 20, Risk Management and the Financial Manager._
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