A ___________ Is Not a Technique for Hedging Long-Term Transaction

question 17

Multiple Choice

A ___________ is not a technique for hedging long-term transaction exposure.

• A) long-term forward contact
• B) long-term futures contract
• C) currency swap
• D) parallel loan

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Definitions:

Express Authority

is explicitly granted permission or power given to an agent or representative by a principal or employer to act on their behalf.

Detailed Language

The use of precise and specific terms in communication or documentation to ensure clarity and reduce ambiguity.

Apparent Authority

A situation where a third party reasonably believes that an agent has the authority to act on behalf of a principal, even if the agent does not have such authority.

Principal

In a financial context, the principal is the initial amount of money borrowed or invested, excluding any interest or profit. In an educational setting, it refers to the head of a school.