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Transaction exposure refers to the risk that an enterprise faces due to fluctuations in exchange rates when it has unhedged foreign currency receivables or payables. In this situation, the firm is exposed to potential gains or losses in the future when the settlement of the obligation takes place. The fluctuation in exchange rates between the transaction date and the settlement date can impact the value of the receivable or payable in the firm's reporting currency.
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In the questions, a part of the sentence is highlighted. Below are given alternatives to the highlighted part which may improve the sentence. Choose th...
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