Which One of the Following Management Techniques Is Likely to Best

question 57

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:

IUPAC Name

A method endorsed by the International Union of Pure and Applied Chemistry for systematically naming chemical compounds.

Compound

A compound created through the chemical bonding of two or more elements.

IUPAC Name

The systematic name for a chemical substance as designated by the International Union of Pure and Applied Chemistry, used to ensure consistency and clarity.

Compound

A material composed of atoms from at least two distinct elements that are chemically combined.