Which of the Following Is Not an Example of a Cash

question 1

Multiple Choice

Which of the following is not an example of a cash flow hedge?

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

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Definitions:

T Test

A statistical hypothesis test used to determine if there is a significant difference between the means of two variables.

Two Groups

A basic experimental design involving comparison between two distinct or independent sets of subjects or conditions to determine differences or effects.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values differ from the mean.

Standard Error of Mean

The standard deviation of the sampling distribution of the sample mean, representing how far the sample mean is likely to be from the population mean.