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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Definitions:

Meiosis

A type of cell division that results in four daughter cells, each with half the number of chromosomes of the parent cell, important for sexual reproduction.

Sexual Reproduction

A biological mechanism that generates a new life form through the merging of genetic information from two distinct organisms.

Telophase II

The final stage of meiosis II where chromosomes decondense, nuclear envelopes form around the daughter nuclei, and cytokinesis occurs, resulting in four haploid daughter cells.

Homologous Chromosomes

Chromosome pairs in diploid beings that are alike in form, dimension, and genetic composition, being inherited from both the mother and the father.