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Basic Question 2 of 2
Economic exposure relates to:
B. The risk that assets might be expropriated by a foreign government.
C. Exposure to hyperinflation or inflation risk.
A. The extent to which currency fluctuations can alter a company's future operating cash flows.
B. The risk that assets might be expropriated by a foreign government.
C. Exposure to hyperinflation or inflation risk.
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Tamara Schultz
Learning Outcome Statements
describe foreign currency transaction exposure, including accounting for and disclosures about foreign currency transaction gains and losses;
analyze how changes in exchange rates affect the translated sales of the subsidiary and parent company;
CFA® 2025 Level II Curriculum, Volume 2, Module 12.