All of the Following Are Examples of a Cash Flow

question 10

Multiple Choice

All of the following are examples of a cash flow hedge, except:

• A) a forward contract to buy US$ hedging recognised borrowings in US$.
• B) a forward contract to buy US$ hedging future interest payments on variable rate debt in US$.
• C) a forward contract to sell US$ hedging a highly probable sale of inventory in US$.
• D) a forward contract to buy US$ hedging an unrecognised firm commitment to purchase goods in US$.

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Definitions:

Instrumental Conditioning

A learning process in which the consequences of a behavior influence the likelihood of its recurrence, emphasizing rewards and punishments.

Attitude

An inclination in psychology marked by assessing an entity with a certain level of like or dislike.

Buckley's

A brand known for its line of over-the-counter medications, notable for their pronounced taste and effectiveness claim.

Low-Involvement Hierarchy

A concept in consumer behavior where decisions are made with minimal cognitive effort and after the purchase, based on basic beliefs and attitudes.