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Dear Sir,
I have just attempted my f9 paper today and consisted of an mcq which asked us to identify which among them qualifies as economic risk.
The option I chose was ” A Brazilian company taking a long term loan of 20m€ at 7% interest.”
I know that without seeing all the options you can’t tell me if I am wrong or right, but it would be of great help if you could just let me know if the long term loan qualifies as economic risk. I thought that as changes in exchange rate affect future cash flows (interest payment), it could be termed as economic risk.
Thank you in advance.
Regards,
Rajvir Singh Oberai.
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