Financial Derivatives Can Be Used to Manage All of the Following

question 49

Multiple Choice

Financial derivatives can be used to manage all of the following risks EXCEPT:

• A)earnings risks
• B)currency risks
• C)pricing risks
• D)interest rate risks

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Definitions:

Manufacturing Costs

Expenses directly involved in the production of goods, including direct labor, materials, and manufacturing overhead.

Delivery Expenses

Costs incurred by a company to deliver goods to a customer, including transportation and handling charges.

Raw Material

Basic materials that are used in the production process to manufacture finished goods.

Raw Materials

Basic materials and components required in the manufacturing process to produce finished goods.