For a US Resident,the Best Way to Minimize Exchange Rate Risk When

question 10

Multiple Choice

For a U.S resident,the best way to minimize exchange rate risk when investing in foreign stocks is to __________. ​

• A)buy defensive stocks
• B)buy municipal bonds
• C)invest in Certificate of Deposits (CDs)
• D)buy American Depositary Receipts (ADRs)

---

Definitions:

External Users

Individuals or entities outside of a company who use its financial statements, such as investors or creditors.

Internal Users

These are individuals or groups within an organization who use financial and other data in directing and controlling its operations; they include management, employees, and internal auditors.

Cost of Goods Sold

The costs directly related to the manufacturing of products sold by a business, which encompass both materials and labor expenses.

Cost of Goods Manufactured

The total cost of producing goods during a specific period, including labor, material, and overhead expenses.