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How would you explain transaction exposure? How is it different from economic exposure?
Answer:Transaction exposure is the sensitivity of comprehend domestic currency values of the firm's contractual cash flows that is denominated in foreign currencies to not expected changes in exchange rates. Different from the economic exposure, transaction exposure is well-defined and short-term.
OTC refers to financial securities whose sale and purchase are not conducted over a stock exchange.
Ask question #Minimum ed# what is cost volume profits and what are the advantages and disadvantages?
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