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Concerning the Covering of Exchange Market Risks--Assuming That a Depreciation

Question 178

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Concerning the covering of exchange market risks--assuming that a depreciation of the domestic currency is anticipated,one can say that there is an incentive for:


A) Exporters to rush to cover their future needs
B) Importers to rush to cover their future needs
C) Both exporters and importers to rush to cover their future needs
D) Neither exporters nor importers to rush to cover their future needs

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