In the Context of Managing Exchange Rate Risks, When Companies

question 17

Multiple Choice

In the context of managing exchange rate risks, when companies take advantage of spot exchange rates, they:

• A) buy foreign currency at present-day rates in anticipation of future transactions.
• B) make an agreement with a bank to exchange currency at some future date.
• C) simultaneously purchase and sell a given amount of currency at two different rates.
• D) abandon their own country's currency to adopt the most stable currency in the international market.

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Definitions:

Anxiety Responses

Physical and psychological reactions that occur in response to perceived threats or stressful situations, including feelings of fear, apprehension, and increased physiological arousal.

Behaviour Therapy

A therapeutic approach that seeks to modify maladaptive behaviors through reinforcement, punishment, and conditioning.

B. F. Skinner

A prominent psychologist renowned for his work in behaviorism, particularly the development of the theory of operant conditioning.

Hans Eysenck

A German-born British psychologist known for his work on intelligence and personality, particularly his development of the three-factor model of personality.