Which of the following statements are true?
1. Transaction exposure is inherent in all foreign currencies denominated contractual transactions
2. Translation exposure relates to the change in accounting income and balance sheet statements caused by change in exchange rate
3. Economic exposure has an impact on the valuation of a firm
4. Operating exposure does not have any impact on the firm's future operating revenues or future operating costs
Choose the correct option from those below:
A. 1 and 2 only
B. 2 and 3 only
C. 2 and 4 only
D. 1, 2 and 3 only
Answer: Option D
Related Questions on Business and Commerce
A. Commerce
B. Industry and commerce
C. Trade and commerce
D. Selling and buying of goods
Which of the following is not an economic activity?
A. A doctor practicing
B. A lawyer practicing law
C. A professional cricketer playing cricket
D. A student playing cricket
Which of the following is an extractive industry?
A. Cattle breeding
B. Forest cultivation
C. Hunting
D. Flour mills
Which of the following is not a manufacturing industry?
A. Iron and steel works
B. Flour Mills
C. Fruit canning
D. Mining
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