Type of risk in which value of liabilities and assets is...

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Type of risk in which value of liabilities and assets is affected by exchange rate is classified as

A. economic rates

B. foreign exchange risk

C. selling rate

D. buying rates

Answer: Option B

Solution (By Examveda Team)

Type of risk in which value of liabilities and assets is affected by exchange rate is classified as foreign exchange risk. Foreign exchange risk refers to the losses that an international financial transaction may incur due to currency fluctuations.

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