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1. Transaction exposure arises from: a. Borrowing or lending funds when repayment is to be made in a foreign currency. b. Purchasing or selling on

1. Transaction exposure arises from: a. Borrowing or lending funds when repayment is to be made in a foreign currency. b. Purchasing or selling on credit goods or services whose prices are stated in foreign currencies. c. The impact of unexpected exchange rate fluctuations on a firm's future cash flows. d. Both (a) and (b)

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