________ Is NOT a Commonly Used Contractual Hedge Against Foreign

question 63

Multiple Choice

________ is NOT a commonly used contractual hedge against foreign exchange transaction exposure.

• A) Forward market hedge
• B) Money market hedge
• C) Options market hedge
• D) All of the above are contractual hedges.

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Definitions:

Diffusion

The spread of an innovation through its widespread imitation.

Technological Advance

(1) An improvement in the quality of existing products, the invention of entirely new products, or the creation of new or better ways of producing or distributing products. (2) Any improvement in the methods by which resources are combined such that the same quantity of inputs can be made to yield a combination of outputs that is preferred to any combination of outputs that was previously possible.

Distributing

The process of making goods or services available to consumers, often through various channels.

Economists' Models

Simplified representations of the real world used by economists to predict economic outcomes and explore economic theories.