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:

Homosexual

A term relating to a romantic or sexual attraction or behavior between members of the same sex.

Secondary Sex Characteristic

Physical traits that emerge during puberty, not directly involved in reproduction, that distinguish between the sexes, such as facial hair in males and breast development in females.

Body Hair

Hair that grows on the human body during and after puberty, which varies in amount and distribution across different genders and individuals.

Chromosomes

Thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of deoxyribonucleic acid (DNA), carrying genetic information.