In Relation to Potential FX Exposures,historical Data Suggests to Manage

question 15

Multiple Choice

In relation to potential FX exposures,historical data suggests to manage FX exposures:

• A) all importers, exporters, lenders and borrowers in capital markets tend to use currency futures contracts and cross-currency swaps.
• B) in commercial trade transactions importers and exporters use currency futures contracts and in capital market transactions lenders and borrowers use forward exchange contracts.
• C) in commercial trade transactions importers and exporters typically use forward exchange contracts and currency options while in capital markets transactions lenders and borrowers tend to use currency futures contracts and cross-currency swaps.
• D) All importers and exporters in trade as well as lenders and borrowers in capital market transactions tend to use forward exchange contracts and currency options.

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Definitions:

Activation Record

A data structure containing information about the execution state of a subroutine, used for managing function calls and returns in software execution.

Recursive Solutions

Approaches to solving problems where the solution involves calling the same function within itself with gradually modified parameters until a base condition is met.

Recursive Binary Search

A search algorithm that divides a sorted array into halves, calls itself for the half where the target value could be, until it finds the target or the array is not divisible.

Base Cases

The condition(s) in a recursive algorithm that stops the recursion by not calling the method itself.