Creative Publications Pvt. Ltd., a publishing firm based in Germany had entered into several business deals with a few book stores and book lounges in the United States. However, the substantial difference in the currency exchange rate systems of the two nations resulted in the firm facing severe losses. Which of the following risks was encountered by Creative Publications Pvt. Ltd.?
A. Political risk
B. Cultural risk
C. Default risk
D. Economic risk
E. Lifetime risk
Answer: D. Economic risk