The extent to which the income from individual transactions is affected by fluctuations in

foreign exchange values is known as

A$.$ Economic exposure

B$.$ Financial exposure

C$.$ Translation exposure

D$.$ Transaction exposure

is the impact of currency exchange rates changes on the reported financial

statements of a company.

A$.$ Economic exposure

B$.$ Financial exposure

C$.$ Translation exposure

D$.$ Transaction exposure

The extent to which a firm's future international earning power is affected by changes in

exchange rates is known as

A$.$ Translation exposure

B$.$ Financial exposure

C$.$ Economic exposure

D$.$ Transaction exposure

Technical forecasting, if it works, is more accurate with the next

exchange rate.

a$.$ year's

b$.$ decade's

c$.$ week's

d$.$ century's

e$.$ quarter's

f$.$ day's

g$.$ month's

The US has $4\%$ inflation. The UK has $7\%$ inflation. According to PPP$,$ the $$ will go

$($up$/$down$)$ by $\%.$

A problem with the international fisher effect is assumes the real risk free rate will

always be constant across countries.

a$.$ true

b$.$ false