A US-Based Firm with Dollar Denominated Debt, but Continuing Sales Denominated

question 51

Multiple Choice

A U.S.-based firm with dollar denominated debt, but continuing sales denominated in Japanese yen, could

• A) purchase an interest rate cap agreement.
• B) enter into a swap agreement to swap dollar interest for Japanese interest payments.
• C) purchase a series of rolling futures contracts to buy Japanese yen forward.
• D) all of the above.

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Definitions:

Skills Training

Increasing the job knowledge, skills, and abilities that are necessary to do a job effectively.

Process Consultation

A method used in organizational development where a consultant helps a client organization improve its internal processes through observation and advice without taking direct action.

Successful Outcome

The achievement of intended goals or results in a given endeavor.

Toyota Way

A set of principles and behaviors that underlie the Toyota Motor Corporation's managerial approach and production system.