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CTP · Question #716

(Topic 8) When a company creates future receivables and/or payables that are denominated in a currency other than its home or functional currency it is faced with:

The correct answer is B. transaction exposure. See the full explanation below for the reasoning.

Question

  • (Topic 8)

When a company creates future receivables and/or payables that are denominated in a currency other than its home or functional currency it is faced with:

Options

  • Aeconomic exposure.
  • Btransaction exposure.
  • Ctranslation exposure.
  • Dfutures risk exposure.

How the community answered

(45 responses)
  • A
    7% (3)
  • B
    82% (37)
  • C
    2% (1)
  • D
    9% (4)

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