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A Company,worried That the Cost of Funds Might Rise During

Question 46

Multiple Choice

A company,worried that the cost of funds might rise during the term of their short-term borrowing,can hedge this rise by:


A) buying futures contracts on bank-accepted bills.
B) selling futures contracts on bank-accepted bills.
C) buying bank-accepted bills on the spot market.
D) increasing the amount of money that has been borrowed.

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