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Which of the following is true of economic risk? A.It is the degree to which a firm's financial statements are exposed to exchange rate fluctuation.

Which of the following is true of economic risk?

A.It is the degree to which a firm's financial statements are exposed to exchange rate fluctuation.

B.It refers to the possibility that future cash transactions will be affected by changing exchange rates.

C.It refers to the possibility that a firm's present value of future cash flows will be affected by exchange rate fluctuations.

D.It is synonymous with translation risk.

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