Which One of the Following Is a Suggested Method of Reducing

question 39

Multiple Choice

Which one of the following is a suggested method of reducing a U.S.importer's short-run exposure to exchange rate risk?

• A)entering a forward exchange agreement timed to match the invoice date
• B)investing U.S. dollars when an order is placed and using the investment proceeds to pay the invoice
• C)exchanging funds on the spot market at the time an order is placed with a foreign supplier
• D)exchanging funds on the spot market at the time an order is received
• E)exchanging funds on the spot market at the time an invoice is payable

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Definitions:

Standard Deviations

Standard deviation is a measure of the dispersion or variability within a set of data, indicating how much individual data points deviate from the mean of the data set.

Null Hypothesis

A statement that there is no effect or no difference and that any observed effect is due to sampling or experimental error.

Assumption of Normality

This refers to the assumption that a dataset is normally distributed, often required in parametric statistical tests.

Dependent Variable

The variable in an experimental study that is expected to change or respond as a result of manipulations of the independent variable.