VM Industries Imports Numerous Parts from India for Assembly in the USA

question 77

Multiple Choice

VM Industries imports numerous parts from India for assembly in the USA. What category of futures contract will likely be used to hedge this transaction?

• A) Foreign currency
• B) Metals and energy
• C) Interest rates
• D) Equity indexes

---

Definitions:

Emotional Exhaustion

A state of feeling emotionally worn-out and drained as a result of accumulated stress from personal or work life.

Type B Personality

Characterized by a generally laid-back, less competitive, and less stressed approach to life, in contrast to Type A personality.

Fight-Or-Flight Response

A physiological reaction to perceived danger or threat, preparing the body to either confront or flee from the situation.

Daily Hassles

The daily annoyances, such as getting stuck in traffic or misplacing your keys, that can cause stress in your life.