________ arises from volatile changes in exchange rates.Question 1Select one:a.Foreign exchange riskb.Translational exposurec.Transactional exposured.Economic exposure

Discuss the impact of movements in the exchange rate on the current account

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

Fill in the Blank QuestionFill in the blank question.Risks and uncertainties associated with exchange rates may discourage the flow of trade.

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

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