What Can Companies Use to Lock in Exchange Rates to Set

question 62

Multiple Choice

What can companies use to lock in exchange rates to set up a risk-free arbitrage for interest rates?

• A) Expropriation
• B) Forward markets
• C) Counter rates
• D) Futures contracts

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Definitions:

Negative Effects

Adverse outcomes or impacts that result from an action, event, or policy.

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not affect future business decisions.

Capital Project

A long-term investment undertaken to build, add or improve on a capital asset such as buildings or infrastructure, with the expectation of enhancing value.

Sunk Costs

Costs that have already been incurred and cannot be recovered or refunded.