Examveda
Examveda

Risk in which value of investment depends on what happens to foreign exchange rates is classified as

A. preferred risk

B. exchange rate risk

C. country risk

D. foreign risk

Answer: Option B

Solution(By Examveda Team)

Risk in which value of investment depends on what happens to foreign exchange rates is classified as exchange rate risk. Exchange rate risk, also known as currency risk, is the financial risk arising from fluctuations in the value of a base currency against a foreign.

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