Question : Which of the following is not a type of exchange rate risk?
Option 1: Credit risk
Option 2: Interest rate risk
Option 3: Inflation risk
Option 4: Counterparty risk
Correct Answer: Inflation risk
Solution : The correct answer is (c) Inflation risk. Inflation risk refers to the risk of a decline in the purchasing power of money due to general price level increases in an economy, but it is not directly related to exchange rate movements. Credit risk, interest rate risk, and counterparty risk are all types of risks associated with exchange rate fluctuations.
Option 3: Economic risk
Option 4: Political risk
Question : Which of the following is not a type of foreign exchange rate risk?
Option 1: Transaction risk
Option 2: Translation risk
Option 3: Political risk
Option 4: Credit risk
Question : Which of the following is not a type of exchange rate system?
Option 1: Fixed exchange rate system
Option 2: Floating exchange rate system
Option 3: Managed exchange rate system
Option 4: Inflation targeting exchange rate system
Option 1: Fixed exchange rate
Option 2: Floating exchange rate
Option 3: Hybrid exchange rate
Option 4: Dual exchange rate
Question : Which of the following is not a type of exchange rate regime?
Option 3: Managed float exchange rate
Option 4: Hybrid exchange rate
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