Of the following statements, which best describes the primary difference between transaction exposure and translation exposure?
A) Transaction exposure results from changes in currency exchange rates, whereas translation exposure is the result of changes in accounting methods.
B) Transaction exposure results in changes in cash flow, whereas translation exposure does not necessarily result in changes in cash flow.
C) Transaction exposure affects only monetary assets and liabilities, whereas translation exposure affects all assets and liabilities.
D) Transaction exposure must be hedged, but translation exposure does not need to be hedged.