Currency risk is the potential risk of loss from fluctuating foreign exchange rates when an investor has exposure to foreign currency or in foreign - currency traded investments. Currency risk is sometimes referred to as?

Monetary Rate

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Export Rate

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Trade Rate

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Exchange rate risk

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

None of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is D Exchange rate risk
Currency risk is sometimes referred to as exchange rate risk,

Suggest Corrections

Similar questions

Four hundred thirty-four foreign companies from 51 different countries had listed shares on the New York Stock Exchange. Recent research has examined that the companies mentioned above rely entirely on debt financing. Different types of debt give rise to different types of risk. Since foreign currency debt, by definition, requires repayment in a foreign currency, it exposes firms to exchange rate fluctuations. Consequently, firms must consider the impact of currency risk while deciding on the use of foreign debt as part of their preferred funding policy. Which factor is not considered here and which values are overlooked by the finance manager while listing?

Q. If the issuer issues masala bond in rupees, then he gets rid of the risk in the form of currency fluctuation which he passes on to the investor. This bond brings a new and diversified set of investors for Indian companies and more liquidity in foreign exchange.
A. Risk gets passed on the investor
B. More liquidity in foreign exchange
C. Masala bonds bring a new set of investors
Pick out the option which when used to start a sentence combines both the above sentences in one.

Q. The exchange rate at which demand for foreign currency becomes equal to its supply is called the exchange rate.

Explain why the supply of a foreign currency rises in response to a rise in its exchange rate.

The exchange rate at which demand for foreign currency becomes equal to its supply is called:

Join BYJU'S Learning Program

Currency risk is the potential risk of loss from fluctuating foreign exchange rates when an investor has exposure to foreign currency or in foreign - currency traded investments. Currency risk is sometimes referred to as?

The correct option is D Exchange rate riskCurrency risk is sometimes referred to as exchange rate risk,

The correct option is D Exchange rate risk
Currency risk is sometimes referred to as exchange rate risk,