Currency Futures Can Be Used by MNCs to Hedge Payables

question 85

Multiple Choice

Currency futures can be used by MNCs to hedge payables. That is, an MNC would ____ futures to hedge a foreign payable position. Also, currency futures can be used for speculation. For example, a speculator expecting a currency to appreciate would ____ futures.​

• A) ​buy; buy
• B) ​sell; sell
• C) ​buy; sell
• D) ​sell; buy

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Definitions:

Network Hubs

Hardware devices used to connect multiple computers or other network devices together, operating at the physical layer of the OSI model.

Switches

Hardware or software components that can open or close circuits to control the flow of electricity or information in a computing environment.

Security Key

A physical or digital tool used to gain access to secured data or locations, often in the form of a password, code, or hardware token.

Wireless Network

A network where participants communicate over distances without the use of physical cables, using radio frequency or infrared signals.