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Question 112

Which of the following is a speculative risk that an exporter should consider when deciding the currency to use to complete the transaction with an importer?

    Correct Answer: A

    A speculative risk that an exporter should consider when deciding the currency to use to complete the transaction with an importer is exchange rate fluctuation. Speculative risks involve uncertainty about changes that could result in profit or loss. Exchange rate fluctuations introduce uncertainty because the value of the currency can change between the time the deal is made and the time the payment is received, potentially leading to a financial loss for the exporter.

Discussion
Liquidarkness

It's either A or D

Aziz8903Option: A

A. Exchange rate fluctuation