試題詳解

12. Which one of the following statements is wrong?
(A) The use of forward rates increases the short-run exposure to exchange rate risk.
(B) Accounting translation gains and losses are recorded in the equity section of the balance sheet.
(C) A firm can record a profit on its income statement from a foreign subsidiary even when that subsidiary has no profit thanks to exchange rate risk.
(D) Unexpected changes in economic conditions are classified as short-run exposure to exchange rate risk.