The FI Is Acting as a Hedger When It

question 74

Multiple Choice

The FI is acting as a hedger when it

• A)buys or sells currency to balance the FI's net exposure.
• B)takes a nonzero net position in a particular currency.
• C)processes an exporter's transaction in a foreign currency.
• D)makes a market in a currency.
• E)advises customers on their international business.

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Definitions:

Firm's Resources

Assets, capabilities, organizational processes, firm attributes, information, and knowledge that a firm controls and can use to conceive and implement its strategies.

Forecasting Capacity Requirements

The process of predicting the resources (such as machinery, labor, and space) needed to meet product demand at a future time.

Product Life Cycle

The progression of a product through different stages from introduction to growth, maturity, and decline in the marketplace.

Assembly Chart

A graphic means of identifying how components flow into subassemblies and final products.