________ arises from volatile changes in exchange rates. Select one: a. Foreign exchange risk b. Economic exposure c. Transactional exposure d. Translational exposure

International Traders gets attracted by ________ in an economya.increased interest ratesb.Political Crisisc.unemploymentd.inflation

Factors contributing to deviations in the stable and competitive exchange rates:

Your organization has a transaction risk related to USD sales receipts. The organization's risk policy requires that all foreign currency exposures are hedged. Hedging a foreign currency transaction exposure means that you have:Group of answer choicesReduced the probability of foreign currency fluctuationsReduced the standard deviation of the foreign currency.Reduced the consequence of foreign currency fluctuationsReduced the foreign currency risk appetite

Before the transactions can be recorded in a single entity's financial records, they must be converted from sales or purchases made in foreign currencies into its functional currency. Which of the following foreign currency exchange rates may be used to translate the foreign currency purchases and sales in compliance with IAS 21 The Effect of Changes in Foreign Currency Exchange Rates?i) The rate that was in effect on the day the purchase or sale was madeii) The rate that was in effect at the start of the accounting periodiii) The average rate for the year, assuming there were no notable fluctuations during the year iv) The rate that was in effect at the end of the accounting period.a.(ii) and (iv)b.(i) and (iii)c.(iii) onlyd.(i) only

_____ is not a characteristic of speculation.Select one:a.Hedgingb. Risk takingc.Profit motived.Exchange rate fluctuation