To Reduce the Transaction Risk,a Company Can Opt to Contract

question 101

Short Answer

To reduce the transaction risk,a company can opt to contract through financial intermediaries for future delivery of foreign currency at a set price,regardless of the spot price at that time,which is known as ____________________.

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Definitions:

Processed Unconsciously

Pertaining to cognitive operations that occur without conscious awareness or control.

Undesirable Actions

Actions or behaviors that are considered unwanted or negative by society or the individual committing them, often due to their consequences.

Desirable Actions

Behaviors or activities viewed favorably or valued highly by a society or individual, often associated with positive outcomes.

Situational Pressures

External forces that influence individuals' behavior and decision-making in specific contexts.