Economic exposure, one of the three types of foreign exchange exposure: a. arises when foreign currency financial statements of foreign affiliates must be restated into the parent's currency b_ relates to the sensitivity of the firm's contractual cash flows denominated in foreign currency to exchange rate changes as measured in the firm's domestic currency c. relates to the extent to which the value of the firm would be affected by unexpected changes in currency exchange rates d. none of the above Transaction exposure, one of the three types of foreign exchange exposure: a. arises when foreign currency financial statements of foreign affiliates must be restated into the parent's currency b. relates to the sensitivity of the firm's contractual cash flows denominated in foreign currency to exchange rate changes as measured in the firm's domestic currency c. relates to the extent to which the value of the firm would be affected by unexpected changes in currency exchange rates d. all of the above When the U.S. dollar is deemed to be the functional currency of a foreign subsidiary: a. its financial statements are converted to U.S. dollars using the temporal method b. its financial statements are converted to U.S. dollars using the current rate method c. translation under SFAS No. 52 is essentially the same as in SFAS No. 8 d. a. and c