Which of the Following Is Not an Instrument Used by U.S.-Based

question 29

Multiple Choice

Which of the following is not an instrument used by U.S.-based MNCs to cover their foreign currency positions?

• A)forward contracts
• B)futures contracts
• C)non-deliverable forward contracts
• D)options
• E)all of the above are instruments used to cover foreign currency positions.

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Definitions:

Estimated

An approximation or educated guess based on available information or data.

Direct Labor Cost

The total cost of wages, salaries, and benefits paid to employees who directly work on manufacturing a product.

Estimated

A value or quantity that is approximated based on current information or trends, often used in planning and forecasting.

Net Operating Income

The total profit of a company after operating expenses are subtracted from total revenue, but before deducting taxes and interest.