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Matching currency cash flows, Risk-sharing agreements, Back-to-back or parallel loans, and Currency swaps are often used...

Matching currency cash flows, Risk-sharing agreements, Back-to-back or parallel loans, and Currency swaps are often used to hedge a. translation exposure b. accounting exposure c. transaction exposure d. operating exposure

a

b

c

d
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Answer #1

Option D is correct, i.e. Operating Exposure.

Operating Exposure is day to day Operating exposure that needs to be managed by using these techniques i.e. Matching currency cash flows, Risk-sharing agreements, Back-to-back or parallel loans, and Currency swaps.

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