Question

Transaction exposure manifests itself when MNCs engage in each of the following, except: Group of answer choices Forward market. Acquiring assets/Incurring liabilities in foreign currency Buying/Selling on credit in foreign currency. Swap market /Options market. Futures market.

Answer 1

Answer:

Forward market.

Explanation:

Transaction exposure represent the uncertatinity level where the business is involved in the trade that to be done on the international level. It is the risk where the currency exchange rate fluctuates when the financial obligation is undertaken by the firm

So as per the given situation, it engaged in all the things except the forward market because in all other things it is engaged by the MNC

Therefore the first option is correct