Multiple Choice
A firm needs to develop a mechanism for ensuring it maintains an appropriate mix of tactics and strategies for minimizing its foreign exchange exposure.Which of the following is true of the mechanism required?
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.
Correct Answer:
Verified
Correct Answer:
Verified
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