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Question : Which of the following is not a type of foreign exchange rate risk?

Option 1: Transaction risk

Option 2: Translation risk

Option 3: Political risk

Option 4: Credit risk


Team Careers360 16th Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

Correct Answer: Credit risk


Solution : The correct answer is (d) Credit risk

Credit risk is not a type of foreign exchange rate risk. It is a risk associated with the potential default or non-payment by a borrower on their financial obligations. Credit risk is primarily related to the creditworthiness and financial stability of the counterparty, rather than fluctuations in foreign exchange rates.

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