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CIMAPRA17-BA1-1 Exam - Topic 1 Question 50 Discussion

Company A owns a factory in a foreign country. Which of the following types of exchange rate risk is company A most likely to experience in relation to the value of the factory'?
A) Economic risk
B) Energy risk
C) Transaction risk
D) Translation risk

CIMAPRA17-BA1-1 Exam - Topic 1 Question 50 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam
Question #: 50
Topic #: 1
[All CIMAPRA17-BA1-1 Questions]

Company A owns a factory in a foreign country. Which of the following types of exchange rate risk is company A most likely to experience in relation to the value of the factory'?

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Suggested Answer: A

by Stephaine at May 06, 2022, 06:26 AM

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Maira
10 months ago
Surprised that energy risk isn't mentioned more often!
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Glennis
10 months ago
Wait, isn't translation risk also important?
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Barrett
11 months ago
Yeah, but economic risk is the main concern here.
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Beckie
11 months ago
I think transaction risk could be a factor too.
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Buddy
11 months ago
Definitely economic risk, since it affects long-term value.
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Tomoko
11 months ago
Hmm, this question seems a bit tricky. I'll need to think it through carefully. I know Scope 1 and Scope 2 have to do with different types of emissions, but I'm not totally sure of the specifics.
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Arleen
11 months ago
I'm not sure, but I remember something about Modern terrorism being more complex and organized, maybe that's the right choice?
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Carli
11 months ago
Ah, I see. Using a Lightning process to launch a flow could be an interesting approach. I'll have to think that one through.
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Suzi
11 months ago
The network layer is definitely the right answer here. Routers work by routing packets between networks, which is a network layer function.
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Maynard
11 months ago
Okay, I've got it. The answer is D. Contactless tokens establish a logical connection without a physical link to the client.
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