Which of the Following Is NOT an Acceptable Hedging Technique

question 6

Multiple Choice

Which of the following is NOT an acceptable hedging technique to reduce risk caused by a relatively predictable long-term foreign currency inflow of Japanese yen?

• A) Import raw materials from Japan denominated in yen to substitute for domestic suppliers.
• B) Pay suppliers from other countries in yen.
• C) Import raw materials from Japan denominated in dollars.
• D) Acquire debt denominated in yen.

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Definitions:

Authoritative

A leadership style characterized by high expectations and support, balancing firm direction with responsiveness to needs.

High Standards

Expectations or requirements that are significantly above average, often challenging to meet or maintain.

Sympathetic

Part of the autonomic nervous system that prepares the body for physical activity and is often referred to as the "fight or flight" response.

Well-Behaved

Describes an individual (often a child) who acts in a manner that is socially acceptable and follows established rules.