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:

Voltage

The electrical potential difference between two points, measured in volts, essential for the flow of electrical current.

C-chart

A type of control chart used to monitor the number of defects per unit in a manufacturing or business process.

Flaws

Imperfections, defects, or faults that affect the appearance, functionality, or integrity of an object or process.

Process Capability Ratio

The process capability ratio is a statistical measure that quantifies how well a process can produce output within specified limits of variability.