When Referring to Foreign- Currency Transactions, Hedging Is a Process

question 47

Multiple Choice

When referring to foreign- currency transactions, hedging is a process in which:

• A)a company protects itself from losing money in one transaction by engaging in a counterbalancing transaction.
• B)companies sell the same product in various countries at similar prices to minimize the currency risks associated with any one particular country.
• C)companies wager that the currency of one country will rise relative to their own.
• D)a company wagers that the currency of one country will fall relative to its own.

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Definitions:

Reclusive

A person or lifestyle characterized by withdrawal from society or preferring solitude and isolation from others.

Actual Malice

Knowledge of falsity or reckless disregard for the truth, especially in defamation law regarding public figures.

Tort Law

Tort law governs the legal process for civil wrongs, where a person's actions unintentionally cause harm or loss to another, leading to legal liability.

Compensate

To provide something, often financial remuneration, in exchange for something lost, damaged, or spent; to make amends or give an equivalent.