Question

Foreign exchange risk exposure economic discussion

Answer 1

Foreign exchange risk - also called FX risk, currency risk, or exchange rate risk - is the financial risk of an investment's value changing due to the changes in currency exchange rates. This also refers to the risk an investor faces when he needs to close out a long or short position in a foreign currency at a loss, due to an adverse movement in exchange rates.

Read more: Foreign-Exchange Risk https://www.investopedia.com/terms/f/foreignexchangerisk.asp#ixzz5H4oBSxax

Answer 2

Explanation:

Banks play an important role in capital formation, which is essential for the economic development of a country. They mobilize the small savings of the people scattered over a wide area through their network of branches all over the country and make it available for productive purposes.