Finance · Risk Management
Risk management in Foreign Exchange operations is a multi-dimensional task. Which of the following are considered types of Foreign Exchange Risk or Exposure that a financial entity or corporate must manage? 1. Transaction Exposure 2. Translation Exposure (Accounting Exposure) 3. Economic Exposure (Operating Exposure) 4. Settlement Risk (Herstatt Risk) 5. Gap Risk or Interest Rate Risk 6. Legal and Compliance Risk Select the correct option:
- 14, 5, and 6 only
- 21, 2, 3, 4, 5, and 6✓
- 31, 3, 4, and 6 only
- 41, 2, and 3 only
Correct answer
1, 2, 3, 4, 5, and 6
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