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:

Joint Tenancy

A form of property ownership in which two or more parties share equal ownership and rights to the entire property.

Four Unities

The Four Unities are joint tenancy principles requiring unity of possession, interest, title, and time, ensuring equal rights to the property among co-owners.

Servient Tenement

The property through which an easement is created or through which it extends.

Dominant Tenement

The property to which the right or privilege of an easement attaches.