0 / 1 pts Incorrect Question 6 Which of the following statements is FALSE? Transaction exposure can be managed by balancing the sensitivity of revenue and expenses to exchange rate fluctuations. Even purely domestic firms can be affected by economic exposure. While many managers understand the effects of random exchange rate changes on the dollar value of their firms' assets and liabilities denominated in foreign currencies, they often do not understand the effect of volatile exchange rates on operating cash flows. Economic exposure represents the impact of exchange rate fluctuations on a firm's future cash flows. A firm's economic exposure is determined by a firm's ability to mitigate the effect of FX changes by adjusting its market, product mix, and sourcing