Q211
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
AnswerC.
selling rate
D.
buying rates
Answer: Option B
Solution
Answer: Option B
Solution:
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.