Question 1

Economic or translation exposure is generally more difficult to effectively hedge compared to transaction exposure.

a) True

b) False

Question 2

Transaction exposure management involves developing a(n) ____ solution.

a) long-term

b) short-term

c) immediate

d) None of these are correct.

Question 3

____ exposure occurs when an MNC translates each subsidiary's financial data to its home currency for consolidated financial statements.

a) Translation

b) Transaction

c) Economic

d) None of these are correct.