Hedging a Position Exposed to Exchange-Rate Risk Is the Act

question 45

True/False

Hedging a position exposed to exchange-rate risk is the act of reducing or eliminating a net asset or net liability position in the foreign currency.

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Definitions:

Cross-docking

A logistics practice where incoming shipments are unloaded, sorted, and directly reloaded onto outbound vehicles to reduce storage time.

Outbound Shipments

Goods being sent out from a company, warehouse, or distribution center to their intended destination.