A customer based in the UK exports automotive parts to the US. His main competitor is in France. What type of exposure to currency risk is posed by movements in EUR/USD?

The correct answer is C. Economic exposure. See the full explanation below for the reasoning.

Question

Options

ATransaction exposure
BTranslation exposure
CEconomic exposure
DNone

How the community answered

(28 responses)

A
4% (1)
B
14% (4)
C
75% (21)
D
7% (2)

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