MAC4865 Assignment 3 Answers - Year Module, 2026 | Due Date 2026

, MAC4865 ASSIGNMENT 3 2026 ANSWERS - DUE DATE 2026




QUESTION 1 (25 Marks)

1.1 Various risks may arise that relate to currencies and possible movements in exchange
rates.

Match each of the risks to the description of the risks.

1.1.1 Currency risk

A. The risk of buying or selling on credit in foreign currencies.

B. The risk that arises from possible future movements in an exchange rate.

C. The risk where any change in the economy, home or abroad, can affect the value of a
transaction before a commitment is made.

D. The risk that exchange rates will cause assets to fall in value, or liabilities to increase in
value, resulting in losses to an entity.

Answer: B




1.1.2 Economic risk

A. The risk of buying or selling on credit in foreign currencies.

B. The risk that arises from possible future movements in an exchange rate.

C. The risk where any change in the economy, home or abroad, can affect the value of a
transaction before a commitment is made.