If the Purpose of Buying Currency Contracts Is to Realize

question 37

Multiple Choice

If the purpose of buying currency contracts is to realize a net gain, then the purchaser is _____ and not _____.

• A)hedging….speculating
• B)speculating….hedging
• C)speculating….financing
• D)hedging….financing
• E)Purchasers do not get involved in managing currency fluctuation as this is solely a finance department activity.

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Definitions:

Performance Pressure

The stress experienced by individuals when they are expected to perform well in any given activity, particularly in front of others.

Increased Levels of Anxiety

Refers to a heightened state of worry, nervousness, or unease, typically about imminent events or something with an uncertain outcome.

Accessible

Describes something that is easily approachable, obtainable, or usable by individuals, emphasizing ease of use or understanding.

Recently Learned

Pertains to knowledge or skills that one has acquired not long ago, emphasizing recent improvement or education.