A US Timber Products Firm Has a Long-Term Contract to Import

question 21

Multiple Choice

A U.S. timber products firm has a long-term contract to import unprocessed logs from Canada. To avoid occasional and unpredictable changes in the exchange rate between the U.S. dollar and the Canadian dollar, the firms agree to split between the two firms the impact of any exchange rate movement. This type of agreement is referred to as:

• A) risk-sharing.
• B) currency-switching.
• C) matching.
• D) a natural hedge.

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Definitions:

Continuous Reinforcement

A conditioning schedule where every correct response or desired behavior is followed by a reward, used to establish or strengthen behaviors.

Food-deprived Rats

A condition used in experiments where rats are not given food for a period of time to study the effects of hunger on behavior and physiology.

Lever

A simple mechanical device consisting of a rigid bar that pivots on a fixed point, used to apply force and move an object at one end by applying force to the other.

Fixed-interval

In the context of psychology, it refers to a schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed.