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
Correct Answer: Credit risk
Solution : The correct answer is (d) Credit risk
Credit risk is not a type of foreign exchange rate risk. It is a risk associated with the potential default or non-payment by a borrower on their financial obligations. Credit risk is primarily related to the creditworthiness and financial stability of the counterparty, rather than fluctuations in foreign exchange rates.

.Tech Integrated Graduate of NIET Greater Noida.jpg)


