Assume You Are an American Exporter and Expect to Receive

question 120

Multiple Choice

Assume you are an American exporter and expect to receive 50 pounds sterling at the end of 60 days.You can remove the risk of loss due to a devaluation of the pound sterling by:

• A) Selling sterling in the forward market for 60-day delivery
• B) Buying sterling now and selling it at the end of 60 days
• C) Selling the dollar equivalent in the forward market for 60-day delivery
• D) Keeping the sterling in Britain after it is delivered to you

---

Definitions:

Encoding

The process by which information is transformed into a format that can be stored in memory, an initial step in creating a new memory.

Retrieving

The process of getting information out of memory storage.

Core Knowledge Perspective

A theory in developmental psychology that suggests children are born with innate knowledge systems or core domains of thought.

Innate Knowledge Systems

Cognitive structures present at birth that allow individuals to acquire knowledge, often considered a part of the nature versus nurture debate.