Which of the Following Statements Are Correct

question 19

Multiple Choice

Which of the following statements are correct?
I. The usage of forward rates can help reduce the short-run exposure to exchange rate risk.
II. Accounting translation gains are recorded on the income statement as other income.
III. The long-run exchange rate risk faced by an international firm can be reduced if the firm borrows money in the foreign country where it has operations.
IV. Unexpected changes in economic conditions are classified as short-run exposure to exchange rate risk.

• A)I and III only.
• B)II and IV only.
• C)II and III only.
• D)I and IV only.
• E)I and II only.

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Definitions:

Verbal Report

An oral communication of information between individuals, often used in healthcare settings.

Oncoming Nurse

A nurse who is about to begin their shift and take over patient care responsibilities.

Heparin

An anticoagulant medication used to prevent and treat blood clots.

Partial Thromboplastin Time (PTT)

A blood test that measures how long it takes blood to clot, used to assess bleeding and clotting disorders and monitor anticoagulation therapy.