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What is the primary difference between transaction risk and economic risk in foreign exchange?a)Transaction risk relates to short-term cash flows, while economic risk involves longer-term effects on market value.b)Transaction risk is associated with imports, while economic risk is related to exports.c)Transaction risk focuses on internal hedging techniques, while economic risk relies on external methods.d)Transaction risk is easily quantifiable, while economic risk is difficult to measure.Correct answer is option 'A'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the primary difference between transaction risk and economic risk in foreign exchange?a)Transaction risk relates to short-term cash flows, while economic risk involves longer-term effects on market value.b)Transaction risk is associated with imports, while economic risk is related to exports.c)Transaction risk focuses on internal hedging techniques, while economic risk relies on external methods.d)Transaction risk is easily quantifiable, while economic risk is difficult to measure.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the primary difference between transaction risk and economic risk in foreign exchange?a)Transaction risk relates to short-term cash flows, while economic risk involves longer-term effects on market value.b)Transaction risk is associated with imports, while economic risk is related to exports.c)Transaction risk focuses on internal hedging techniques, while economic risk relies on external methods.d)Transaction risk is easily quantifiable, while economic risk is difficult to measure.Correct answer is option 'A'. Can you explain this answer?.

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