Economy, asked by naveen2720, 1 year ago

How would you define transaction exposure how is it different from economic exposure?

Answers

Answered by fadii
0

Hey mate.

Here is your answer.

Transaction exposure is the sensitivity of realized domestic currency values of the firm’s contractual cash flows denominated in foreign currencies to unexpected changes in exchange rates.

Unlike economic exposure, transaction exposure is well-defined and short-term.

Hope it will help you.

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