Question : Which of the following is not a type of foreign exchange risk?
Option 1: Transaction risk
Option 2: Translation risk
Option 3: Political risk
Option 4: Economic risk
Answer (1)
15th Jan, 2024
Correct Answer: Political risk
Solution : The correct answer is (c) Political risk
Political risk is not a type of foreign exchange risk. Political risk refers to the risk associated with political events, instability, or policy changes in a country that can impact investments and business operations, but it is not directly related to foreign exchange fluctuations.
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