Economic/Translation/Transaction risks

I seem to get it all mixed up. can anyone give me a clear explanation on this ? Thanks

Translation - Think accounting (L2). The risk of translating the foreign currency to domestic currency in accounting terms. Economic - Think economic implications. What happens to country x’s exports if currency increases/decreases? Transaction - Think about a known future transaction and the risk associated with converting the foreign currency to domestic currency (or vice versa). This is the most often hedged risk. If I have a payment due in foreign currency in 90 days, I will enter into a forward contract to hedge the risk of the foreign currency appreciating relative to the domestic currency. This is just from the top of my head. I’m sure the texts provide more succinct definitions.

Translation - Balance Sheet exposures Economic - Export Sales exposures Transaction - Cash Flow exposure (CF’s on a derivative contract for example)

This is why the AM session scares the shit out of me. I can’t find ways to be concise.

I’m on that Crazy Train too Ozzy