Which of the Following Does Not Represent an Exchange Risk

question 39

Multiple Choice

Which of the following does not represent an exchange risk on an exposed position to a company transacting business with a foreign vendor?​

• A)​transaction is denominated in foreign currency, settled at a future date
• B)​firm commitment to purchase inventory to be paid for in foreign currency
• C)​Forecasted foreign currency transaction with a high probability of occurrence
• D)​firm commitment to purchase inventory denominated in U.S.dollars

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Definitions:

Logistics

Refers to the detailed coordination and implementation of complex operations involving the supply chain, from procurement to distribution.

Supply Chain Management

The management of the flow of goods and services, involving the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.

Channel Dynamics

The changes and developments in the way a company brings its product or service to market, involving distribution and logistical considerations.

Distribution Results

Outcomes or effects resulting from the way a product or service is distributed or made available to consumers.