Forex

Also known as foreign exchange risk

Evaluate responses using AI:

OFF

Answer explanation

Currency risk

financial risk that arises from the change in price of one currency against another.

Evaluate responses using AI:

OFF

Answer explanation

Currency risk

- foreign exchange risk

investors or companies face whenever they have assets or business operations across national borders

Evaluate responses using AI:

OFF

Answer explanation

Currency risk

- foreign exchange risk

- wether or not a certain risk factor affects a firms performance

Evaluate responses using AI:

OFF

Answer explanation

Exposure

- how much does a risk factor affect a firm's performance.

Evaluate responses using AI:

OFF

Answer explanation

Risk

- current price at which a commodity, currency or security can be purchased for immediate delivery.

Evaluate responses using AI:

OFF

Answer explanation

Spot rate

the price that is quoted in the market at any given time.

Evaluate responses using AI:

OFF

Answer explanation

Spot rate

- price at which a commodity, currency or security is agreed to be bought or sold at a specified future date.

Evaluate responses using AI:

OFF

Answer explanation

Forward rate

determined by supply and demand in the forward market, and they reflect the markets expectations of future prices.

Evaluate responses using AI:

OFF

Answer explanation

Forward rate

Measuring exposure

Evaluate responses using AI:

OFF

Answer explanation

Functional currency

Real value

Unanticipated changes