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Transaction exposure

• Risk to a firm with known future cash flows in a foreign currency that arises from possible changes in the exchange rate. Related: translation exposure.

 
 Embedded terms in definition
 Cash flow
Cash
Currency
Exchange rate
Exchange
Firm
Foreign currency
Foreign
Future
Risk
The exchange
Translation exposure
 
 Related Terms
 

<< Transaction demand for money Transaction loan >>

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Beware of small expenses; a small leak will sink a great ship. - Benjamin Franklin (1706-1790)

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