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.
Question : Which of the following is not a type of foreign exchange risk?
Option 4: Economic risk
Question : Which of the following is not a type of exchange rate risk?
Option 1: Credit risk
Option 2: Interest rate risk
Option 3: Economic risk
Option 4: Political risk
Option 3: Inflation risk
Option 4: Counterparty risk
Question : Which of the following is not a type of exchange rate exposure?
Option 1: Transaction exposure
Option 2: Translation exposure
Option 3: Economic exposure
Option 4: Currency exposure
Question : Which of the following is not a type of foreign exchange market transaction?
Option 1: Spot transaction
Option 2: Forward transaction
Option 3: Option transaction
Option 4: Derivative transaction
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