To Protect Against Loss as a Result of Adverse Currency

question 95

Multiple Choice

To protect against loss as a result of adverse currency fluctuations, an export firm may:

• A)demand cash settlement
• B)sell a millennial contract as a hedge
• C)require the customer to make payment in the exporter's currency
• D)require a government guarantee against currency loss of value
• E)none of the above

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Definitions:

Artisan

A skilled craft worker who makes or creates things by hand that may be functional or strictly decorative.

Compensated Surety

A surety who receives compensation for guaranteeing the performance or obligations of another.

Contract Change

Modifications or amendments to the terms and conditions of a contract, typically agreed upon by all involved parties.

Right to Contribution

The legal right allowing a party who has paid more than their share of a common debt to demand reimbursement from other liable parties.