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    When an enterprise has a receivable or payable denominated in a foreign currency and settlement of the obligation has not yet taken place, that firm is said to have __________ exposure.

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    When an enterprise has a receivable or payable denominated in a foreign currency and settlement of the obligation has not yet taken place, that firm is said to have __________ exposure.

    © BrainMass Inc. brainmass.com June 3, 2020, 7:34 pm ad1c9bdddf
    https://brainmass.com/business/foreign-exchange-rates/104384

    Solution Preview

    Let us understand first of all different types of exposure:

    Transaction exposure
    It is the extent to which given exchanges rate change will change the value of foreign currency denominated transactions already entered into.

    Translation (Accounting) exposure
    The change in the value of a firm's foreign currency denominated accounts due to a ...

    Solution Summary

    Your tutorial discusses the five kinds of exposure to help you know how to respond.

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