Foreign Exchange Hedging by a Multinational Corporation Is

question 106

Multiple Choice

Foreign exchange hedging by a multinational corporation is

• A) a normal responsibility of foreign exchange specialists.
• B) not ordinarily considered to be prudent business.
• C) usually described in speculative terms.
• D) permitted only for defensive purposes.

---

Definitions:

Risk-taking Behavior

Engaging in activities that have the potential for harmful physical or emotional outcomes, often in pursuit of a perceived reward.

Biological Irreversibility

The concept that certain biological events (e.g., death, maturation) cannot be reversed or undone.

Terminal Bone Cancer

A stage of bone cancer where the disease is advanced and deemed incurable, focusing treatment on palliation rather than cure.

Biological Irreversibility

A concept referring to processes or changes in living organisms that cannot be reversed, such as growth or death.