Which of the Following Is a Function of the Foreign

question 25

Multiple Choice

Which of the following is a function of the foreign exchange market?

• A)To provide some insurance against foreign exchange risk
• B)To protect short-term cash flow from adverse changes in exchange rates
• C)To eliminate volatile changes in exchange rates
• D)To reduce the economic exposure of a firm
• E)To enable companies to engage in capital flight when countertrade is not possible

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Definitions:

Railway Labor Act

A U.S. federal law that governs labor relations in the railroad and airline industries, primarily focusing on dispute resolution.

Independent Contractors

Individuals or businesses that provide services to another entity under terms specified in a contract or within a verbal agreement, not as employees.

Agricultural Workers

Individuals employed in the sector of agriculture, performing labor related to cultivating soil, planting, harvesting, and raising livestock.

Federal Law

The body of law created by the federal government of a country, which applies to all entities and people within its jurisdiction.