Which of the Following Is NOT an Acceptable Hedging Technique

question 6

Multiple Choice

Which of the following is NOT an acceptable hedging technique to reduce risk caused by a relatively predictable long-term foreign currency inflow of Japanese yen?

• A) Import raw materials from Japan denominated in yen to substitute for domestic suppliers.
• B) Pay suppliers from other countries in yen.
• C) Import raw materials from Japan denominated in dollars.
• D) Acquire debt denominated in yen.

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Definitions:

Abbreviation

A clipped version of a word or phrase.

Papanicolaou

A test, also known as a Pap smear, used to detect cervical cancer in women, involving the collection of cells from the cervix.

Smear

a thin layer of a substance spread over a surface, especially for laboratory examination.

Total Abdominal Hysterectomy

A surgical procedure to remove the uterus through an incision in the abdomen.