Which One of the Following Management Techniques Is Likely to Best

question 22

Multiple Choice

Which one of the following management techniques is likely to best offset the risk of long-run exposure to payables denominated in a particular foreign currency?

• A) Borrow money in the foreign currency in question.
• B) Lend money in the foreign currency in question.
• C) Rely on the Federal Reserve Board to enact monetary policy favorable to your exposure risk.
• D) none of the above

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Definitions:

Innovation

The introduction of new ideas, methods, or products.

Billion People

A term signifying a population size of approximately one billion individuals, often used in demographic contexts to discuss global population statistics.

Disasters

Severe and sudden events causing great damage, loss, or destruction, which can be natural, like earthquakes and hurricanes, or human-made, like wars and industrial accidents.

Affected

Influenced or touched by an external factor, causing a change or difference in condition or behavior.