Transaction exposure deals with cash flows that result from existing contractual obligations.
The degree of uncertainty that businesses engaged in international trade must deal with is known as transaction exposure. It is also known as translation exposure or translation risk .
It is specifically the risk that exchange rates will change after a company has already committed to a financial obligation. These foreign enterprises are extremely vulnerable to changing exchange rates, which can result in significant capital losses.
Transaction exposure often carries only one side of the risk. The only company that might experience this vulnerability is one that completes a transaction in a foreign currency.
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Answer:
A). It will decrease - 'the quantity of coffee demanded.'
B). It will increase - 'the quantity of coffee supplied by producers'
Explanation:
'Binding price floor' is demonstrated as the price greater than the equilibrium price set by the government to ensure that the prices of such products do not fall below a specific limit.
As per this definition, <u>the quantity of coffee demanded by the consumers will decrease while the quantity supplied(by producers) will increase if the binding price remains constant for several years</u>. This situation of decrease in the quantity demanded(due to hike in prices which is artificially made by the government) while an increase in quantity supplied(due to people reducing purchases as a consequence of hike in prices) which helps ensure a surplus in that good i.e. 'coffee' here.
I think it is population.
There were several disadvantages of early forms of money like the limestone, cattle and shells. Firstly they were really tough to transport from one place to another because of the huge size. Secondly these kind of money were very rare and so it was highly difficult to find them.
