Currency Futures Are Used to ________

question 88

Multiple Choice

Currency futures are used to ________.

• A) reduce a lender's exposure to credit risk
• B) buy commodities at a fixed price
• C) avoid obligations to buy or sell assets
• D) hedge against exchange rate shifts
• E) reduce a borrower's exposure to credit risk

---

Definitions:

Cash Conversion Cycle

A measurement that calculates the duration required for a business to transform its inventory investments and additional resources into cash flows resulting from sales.

Accounts Receivable

Money owed to a business by its customers for goods or services provided on credit.

Accounts Payable

Accounts payable are amounts a company owes to suppliers for items or services purchased on credit; it is a current liability on the balance sheet.

Nominal Annual Cost

The cost of a product or service stated in current year prices without adjusting for inflation or deflation.