A ________ Allows, but Does Not Require, a Firm to Buy

question 41

Multiple Choice

A ________ allows, but does not require, a firm to buy or sell a specified amount of foreign currency at a specified price at any time up to a specified date.

• A) forward swap
• B) currency option
• C) call option
• D) discount put

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Definitions:

Declining Industries Argument

The declining industries argument posits that sectors experiencing a sustained decrease in demand or productivity require intervention or support, often invoking protectionist measures to safeguard employment and regional economies.

Imported Steel

Steel that is produced in one country and brought into another for use in manufacturing or construction.

Wage Subsidies

Financial incentives provided by governments to employers to encourage the hiring of certain groups of people, reducing unemployment.

Tariffs

Taxes imposed by a government on imported goods to protect domestic industries or to raise revenue.