You Are Importing TV Sets Worth ¥10,000,000 from a Japanese

question 9

Multiple Choice

You are importing TV sets worth ¥10,000,000 from a Japanese manufacturer, and this amount is payable after six months.You can hedge your exchange risk by doing one of the following.

• A)Buying Japanese Yen in the forward market.
• B)Selling Japanese Yen in the forward market.
• C)Borrowing Japanese Yen.
• D)Do nothing.

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Definitions:

Converted

This refers to changing something from one use, function, or purpose to another, such as converting raw materials into finished goods or converting an industrial building into a residential space.

Sovereign Wealth Fund

State-owned investment funds or entities that manage national savings for the purposes of investment and maintaining the country's wealth.

Private Equity Fund

A type of investment fund that pools money from investors to acquire stakes in private companies with the aim of realizing a profit through future sales or public offerings.

Market Securities

Financial instruments, such as stocks and bonds, that are traded in financial markets.