If a Firm Must Pay for Goods It Has Ordered

question 9

Multiple Choice

If a firm must pay for goods it has ordered with foreign currency, it can hedge its foreign exchange rate risk by ________.

• A) selling foreign exchange futures short
• B) buying foreign exchange futures long
• C) staying out of the exchange futures market
• D) selling foreign exchange forward contracts short

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Definitions:

Quantitative Analysis

In microbiology, a determination of the number of bacteria present in a specimen by direct count of colonies grown on a culture plate.

24-Hour Specimen

A collection of all urine produced by an individual in a 24-hour period, used for various diagnostic tests to identify abnormalities or monitor kidney function.

Chloride

A negatively charged ion (Cl-) that is most commonly found in table salt and is essential for maintaining fluid balance and blood pressure in the body.

Clean-Catch Midstream

A urine collection method where the sample is captured 'midstream' to minimize contamination from the external genitalia.