Transaction Exposure to Currency Risk Is Easy to Hedge with Currency

question 3

True/False

Transaction exposure to currency risk is easy to hedge with currency forwards.

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Definitions:

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders, indicated on the balance sheet.

Net Income

The conclusive profit of a corporation post-deduction of all operational costs and taxation from the aggregate revenue.

Cash Dividends

Payments made by a corporation out of its earnings to its shareholders, usually in the form of cash.

Stock Dividends

A payment made to shareholders in the form of additional shares, rather than cash.