Which of the Following Is NOT Cited as a Good

question 23

Multiple Choice

Which of the following is NOT cited as a good reason for hedging currency exposures?

• A) Reduced risk of future cash flows is a good planning tool.
• B) Reduced risk of future cash flows reduces the probability that the firm may not meet required cash flows.
• C) Currency risk management increases the expected cash flows to the firm.
• D) Management is in a better position to assess firm currency risk than individual investors.

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Wealth

An abundance of valuable resources or material possessions, often leading to a level of financial security and the ability to influence or command resources.

Luxury

A state of great comfort or elegance, often expensive, that provides pleasure and indulgence beyond the standard necessity.

Italian City-State

Independent, self-governing urban centers in Italy, prominent during the Middle Ages and Renaissance, characterized by thriving trade, culture, and political autonomy.

Creative Individuals

People who exhibit creativity and originality in their thoughts and actions, often contributing significantly to the arts, sciences, and other areas of human endeavor.