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Basic Question 2 of 2

Economic exposure relates to:

A. The extent to which currency fluctuations can alter a company's future operating cash flows.
B. The risk that assets might be expropriated by a foreign government.
C. Exposure to hyperinflation or inflation risk.

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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu

Edward Liu

Learning Outcome Statements

describe foreign currency transaction exposure, including accounting for and disclosures about foreign currency transaction gains and losses;

analyze how changes in exchange rates affect the translated sales of the subsidiary and parent company;

CFA® 2025 Level II Curriculum, Volume 2, Module 12.