In Terms of Foreign Exchange,which of the Following Is True

question 9

Multiple Choice

In terms of foreign exchange,which of the following is true of leading and lagging strategies?

• A)They primarily protect long-term cash flows from adverse changes in exchange rates.
• B)They are used to minimize economic exposure of companies.
• C)They can help firms minimize their transaction and translation exposure.
• D)They involve accelerating payments from strong-currency to weak-currency countries.
• E)They are limited by governments because they create pressure on strong currencies.

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Definitions:

Inspirational

Serving to motivate, encourage, and stimulate someone or something, often leading to creative ideas or actions.

Long Term

Pertaining to an extended period of time, typically involving planning or investment that spans several years.

Meaningful

Significance or value that is profound, having a deep impact or relevance.

Vision

A forward-looking statement or concept that outlines what an organization or individual wants to achieve or become in the future.