7) Which of the following is an example of economic exposure but not an example of transaction

exposure? (7 points)

1. An increase in the pounds value increases a U.S. firms cost of British pound payables
2. An increase in the dollars value hurts a U.S. firms domestic sales because foreign competitors are able to increase their sales to U.S. customers.
3. A decrease in the pesos value decreases a U.S. firms dollar value of peso receivables.
4. A decrease in the Swiss francs value decreases the dollar value of interest payments on a Swiss deposit sent to a U.S. firm by a Swiss bank.