Economics B A-Level
Exchange rate risk
What Exchange rate risk means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Exchange rate risk
Check what you remember
Read the wording for your board, then hide it and explain Exchange rate risk in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
Financial uncertainty arising from currency fluctuations during international transactions, where a business faces potential financial losses between the time a contract is agreed and when payment is settled.
Topics that use Exchange rate risk
- Risks and uncertainty (Pearson Edexcel A-Level)
Related terms
- Business resilience
- Contingency planning
- Financial stability
- Forward contract
- Risk
- Supply-side shocks
- Uncertainty
- Demand-side shocks
Using Exchange rate risk in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
Practise Economics B questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
Start free
All Economics B A-Level termsA week of Premium from your first lesson · Then the free plan continues · No card, no charge