When Referring to Foreign- Currency Transactions, Hedging Is a Process

Multiple Choice

When referring to foreign- currency transactions, hedging is a process in which:

A) a company protects itself from losing money in one transaction by engaging in a counterbalancing transaction.
B) companies sell the same product in various countries at similar prices to minimize the currency risks associated with any one particular country.
C) companies wager that the currency of one country will rise relative to their own.
D) a company wagers that the currency of one country will fall relative to its own.