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

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 50
Topic #: 1

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'?

AEconomic risk

BEnergy risk

CTransaction risk

DTranslation risk

Show Suggested Answer

Suggested Answer: A

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

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Maira

7 months ago

Surprised that energy risk isn't mentioned more often!

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Glennis

7 months ago

Wait, isn't translation risk also important?

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Barrett

7 months ago

Yeah, but economic risk is the main concern here.

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Beckie

8 months ago

I think transaction risk could be a factor too.

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Buddy

8 months ago

Definitely economic risk, since it affects long-term value.

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Tomoko

8 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

8 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

8 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

8 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

8 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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