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Differentiating between accounting and economic exposure

Please answer the given questions.

Question 1: Define exposure, differentiating between accounting and economic exposure. What role does inflation play?

Question 2: Describe at least three circumstances under which economic exposure is likely to exist.

Question 3: Of what relevance are the international Fisher effect and purchasing power parity to your answers to parts a and b?

Question 4: What is exchange risk, as distinct from exposure?

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Finance Basics: Differentiating between accounting and economic exposure

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Finance Basics: Differentiating between accounting and economic exposure

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