Which of the Following About Foreign Exchange Objectives for a Large

question 46

Multiple Choice

Which of the following about foreign exchange objectives for a large company is incorrect?

• A) An FX strategy that requires a company to hedge a defined percentage of its identified FX exposures at all times is called a defensive strategy.
• B) A company document should state whether it will have a centralised or decentralised FX operation.
• C) A firms' FX function is part of the organisation's treasury division.
• D) Strategies that require a company to analyse and forecast movements in FX markets and then apply based on its forecasts are called hedging strategies.

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