​A Firm Without Any Exposure to Foreign Exchange Rates Would

question 3

Multiple Choice

​A firm without any exposure to foreign exchange rates would likely increase this exposure the most by:

• A) ​borrowing domestically.
• B) ​borrowing a portfolio of foreign currencies that are not highly correlated.
• C) ​borrowing a portfolio of foreign currencies that are highly correlated.
• D) ​borrowing two foreign currencies that are negatively correlated.

---

Definitions:

Research

The systematic investigation into and study of materials and sources to establish facts and reach new conclusions.

Cases

Legal disputes brought before a court of law for resolution.

Statutes

Statutes established by a governing body which can be federal, state, or municipal in nature.

Natural Language Method

An approach to language learning that emphasizes intuition and exposure to the language in natural settings, rather than formal grammar instruction.