Which of the Following Is a Step Taken to Manage

Multiple Choice

Which of the following is a step taken to manage foreign exchange risk?

A) Firms should focus solely on managing transaction and translation exposures.
B) Forecasting future exchange rate movements should be avoided as it is speculative.
C) Firms need to develop strategies for dealing with economic exposure.
D) Firms should avoid central control of exposure.
E) Firms should not distinguish between transaction and translation exposure and economic exposure.