Multiple Choice
To protect against loss as a result of adverse currency fluctuations, an export firm may
A) demand no cash at settlement.
B) use a futures contract as a hedge.
C) require the customer to make payment in the purchaser's currency.
D) a Federal Reserve credit letter.
Correct Answer:
Verified
Correct Answer:
Verified
Q26: An unconditional order for the payment of
Q27: The equilibrium exchange rate is the currency
Q28: The U.S balance of payments involves all
Q29: A nation with relatively lower interest rate
Q30: The exporter's bank may offer considerable assistance
Q32: Economic risk is the risk associated with
Q33: It was created to help economic growth
Q34: The effect of arbitrage activities in foreign
Q35: Hedging is action taken to reduce risk
Q36: The World Bank is also called the