You Are Importing TV Sets Worth ¥10 Million from a Japanese

question 41

Multiple Choice

You are importing TV sets worth ¥10 million from a Japanese manufacturer, and this amount is payable after 6 months. You can hedge your exchange risk by:

• A) buying Japanese yen in the forward market.
• B) selling Japanese yen in the forward market.
• C) borrowing Japanese yen.
• D)doing nothing.

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Definitions:

Commutators

A mechanical switch used in some electric motors and electrical generators to reverse the direction of current flow in the coils.

Hydrogen Atmosphere

An environment or a setting that predominantly contains hydrogen gas (H2).

Efficiency

The ratio of the useful output of a system to the input, expressed in percentage, indicating the system's ability to convert energy or resources into output effectively.

Cooling

The process of removing excess heat from a system to maintain optimal operating conditions, often critical in electrical and electronic systems to prevent overheating.