There Are a Number of Instruments Designed for Foreign Currency

question 42

Multiple Choice

There are a number of instruments designed for foreign currency hedging, all of which are OTC instruments. The ones most frequently used are:

• A) put options.
• B) call options.
• C) fixed- rate instruments (currency swaps and forward foreign exchange contracts).
• D) options.

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Definitions:

Supply and Demand Conditions

The economic factors that affect the availability of goods and services (supply) and the desire of consumers to buy them (demand), influencing their prices.

Customary Price Level

The usual or expected price range for goods or services in a particular market or industry.

Special Promotion

A marketing strategy that involves temporary deals or offerings designed to boost sales or consumer interest in a product or service.

National Supermarket Chain

A large retail chain that operates multiple supermarket locations across an entire country, offering a wide range of food and household products.