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:

PACs

PACs, or Political Action Committees, are organizations that collect funds to donate to political campaigns, candidates, and parties in order to influence elections and policy decisions.

American Politics

The political structure, processes, and issues related to governance and policy-making in the United States, involving a federal system, political parties, and democratic elections.

Military

The armed forces of a country, responsible for defending it against external threats and ensuring domestic security.

Social Institution

An organized structure within society that governs the behavior and expectations of its members, such as family, religion, and education.