1. Currency risk exposure can be categorized as

Multiple Choice

A. Neither of these options are correct.

B. transaction exposure.

C. Both transaction and economic exposure are correct.

D. economic exposure.

2. If a Big Mac costs $C3 in Canada and $2.31 in the United States, according to purchasing power parity, what is the implied exchange rate in terms of $C/$US?

Multiple Choice

A. 1.2987

B. 1.3793

C. 0.7700

D. 1.3276