Which statement correctly describes the nature of

transaction risk and translation risk for corporations

in the EX market?

Transaction risk refers to currency risk from ongoing commercial activity, Translation

risk refers to the revaluing assets and liabilities denominated inforieign curiencies

on the balance shegt.

Transaction risk is when corporations seek to profit from financial risk, while

translation risk is when corporations aim to minimize financial risk.

Transaction risk is when corporations aim to minimize financial risk, while

translation risk is when corporations seek to profif from financial risk.