10.What is economic exposure?

Select one:

a.Exposure to foreign currency movementsfrom thecompany's export and import transactions

b.Any direct or indirect exposure of a company's cashflows to exchange rate movement

c.The exposure of the company's financial statements (income statement, balance sheet) to exchange rate fluctuations

d.Exposureto exchange rate fluctuationsof the company's money kept in foreign banks

11.A UK company is exporting to the US. Its main competitors in the US market are two European companies. How would its export to the US be impacted by a rise in the Euro exchange rate?

Select one:

a.Positively

b.Negatively

c.Cannot be determined

d.Not impacted

12.If a UK company has net outflows of US dollars, how would the company be impacted by an rise in the value of the US dollar?

Select one:

a.Positively impacted

b.Neutral if the company dosen't have US competitors

c.Cannot be determined

d.Negatively impacted

13.If a Danish company which only does business in the Denmark, is negatively impacted by a rise in the Danish Kroner, this would be example of

Select one:

a.Economic exposure

b.Translation exposure

c.International exposure

d.Transaction exposure

14.What is exchange rate risk?

Select one:

a.The risk that a company cashflows will be positively affected by exchange rate movements

b.The risk that a company will not have enough foreign currency to pay its bills

c.The risk that a company's cashflows will be negatively affected by exchange rate movements

d.The risk that a company dosen't get paid by a foreign customer

15.How would a Danish company with no export and import be impacted by a rise in the Danish Kroner.

Select one:

a.Positively impacted because imports would fall

b.Negatively impacted because exports would fall

c.Negatively impacted if it has foreign competitors exporting to Denmark.

d.Not impacted