One Possible Reason for a Balance Sheet Hedge Could Be

question 2

True/False

One possible reason for a balance sheet hedge could be because the foreign subsidiary is about to be liquidated, so that value of its Cumulative Translation Adjustment (CTA) would be realized.

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Definitions:

Sales Approach

The sales approach is a strategy or method used by sales professionals to engage potential clients and persuade them to purchase a product or service.

Buyer

An individual or organization that makes a decision to purchase goods or services.

Consciously Aware

The state of being fully attentive and mindful of one's surroundings and own thoughts and actions.

Small Talk

Casual or informal conversation used to establish rapport with clients before moving into the main topic of discussion.