Individuals and Corporations Can Buy or Sell Forward Currencies to Hedge

question 19

True/False

Individuals and corporations can buy or sell forward currencies to hedge their exchange rate exposure.Essentially, the process involves simultaneously selling the currency expected to appreciate in value and buying the currency expected to depreciate.

---

Definitions:

Knowledge-based Economy

An economy driven by the use of knowledge and information as the key asset for growth and development.

Expert Power

Authority or influence derived from possessing knowledge or skills in a particular area.

Physical Resources

Tangible assets such as buildings, machinery, and raw materials that an organization uses to conduct its business.

Visibility

The degree to which an entity's presence, actions, or status is known and perceivable by others.