Purchasing an Option to Buy Foreign Currency at a Predetermined

question 35

Multiple Choice

Purchasing an option to buy foreign currency at a predetermined exchange rate in order to reduce exchange risk is called:

• A) transfer pricing.
• B) hedging.
• C) translating.
• D) cross-listing.

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Definitions:

First-Level Item

A primary element or option in a hierarchical structure, such as a bullet point in a list or a top-tier item in a menu.

Quick Access Toolbar

A customizable toolbar in software applications like Microsoft Office, providing easy access to frequently used commands and tools.

Save Button

A graphical user interface element that initiates the saving of data to a file or database.

Backstage View

A feature in some software applications that provides access to file management tasks, settings, and information.