Exchange rate risk:A) is the likelihood of an exchange rate remaining constant.B) is the chance of gain or loss from exchange rate movement between the time an order is placed until it is paid for.C) is the chance of losing money on a domestic transaction.D) is very small when dealing with other developed countries.

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Griffin McClendon · Accepted Answer

Final Answer : B, Explanation :  Exchange rate risk refers to the possibility of the exchange rate changing between the time an order is placed and when it is paid for, resulting in a gain or loss for the individual or company involved. Option A is incorrect as exchange rates are known to fluctuate frequently. Option C is incorrect as domestic transactions do not involve exchange rate risk. Option D is incorrect as exchange rate risk can occur regardless of whether the countries involved are developed or not.

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