A Firm Exposed to Exchange Rate Risk Can Hedge Its

question 17

Multiple Choice

A firm exposed to exchange rate risk can hedge its risk by all of the following except:

• A) using the forward exchange market.
• B) borrowing in international money markets.
• C) utilizing foreign currency futures markets.
• D) speculating in foreign currency.

---

Definitions:

Gc

General crystallized intelligence, referring to the ability to use learned knowledge and experience.

Formal Learning

A structured educational process, often occurring in an institutional setting like schools or universities, following a curriculum.

General Ability Factor

A construct that represents the overall cognitive abilities of an individual, often derived from various intelligence test scores.

Information Processing Theories

Theories that describe how humans perceive, think, learn, and remember information, emphasizing the mental processes involved.