An Exporter Who Is to Receive Payment in Foreign Currency

question 8

Multiple Choice

An exporter who is to receive payment in foreign currency in three months and who wants to engage in "hedging" would __________ the foreign currency on the three-Months forward market in order to protect himself/herself from __________ of the Foreign currency.

• A) buy; an appreciation
• B) buy; a depreciation
• C) sell; an appreciation
• D) sell; a depreciation

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Definitions:

Artificial Intelligence

The simulation of human intelligence in machines that are programmed to think like humans and mimic their actions.

Marketing Efforts

Actions or initiatives taken by a company to promote its products or services and reach its target market.

Companies

Legal entities formed by individuals, stockholders, or shareholders with the purpose of conducting commercial or industrial enterprise.

Sustainability

The practice of meeting the needs of the present without compromising the ability of future generations to meet theirs, encompassing environmental, social, and economic dimensions.