Consider These Five Statements

question 26

Multiple Choice

Consider these five statements:
i.If an Australian-based company has a USD 1 million payable on 1 July next year and a USD 1 million receivable due on 1 August,the company has a perfect natural hedge.
ii.An Australian exporter with a transaction denominated in Singapore dollars (SGD) is exposed to downside risk if the AUD appreciates.
iii.An exposure in a currency with a high standard deviation against the AUD entails a greater degree of risk than does a similarly sized exposure in a currency that has a relatively low standard deviation.
iv.If an Australian-based company has net exposures in a range of currencies,each exposure should be not hedged because each of them involves the same degree of risk.
v.If an Australian company imports components from Italy,and at the same time exports goods to Germany,with both contracts under a euro-denominated contract and dated 31 July next year,the company has no FX exposure.
Which of the following are correct?

• A) i, ii, iii and iv are true
• B) i, ii, iv and v are true
• C) ii, iii, and iv are true
• D) ii, iii and v are true

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Definitions:

Health Care Fraud And Abuse Control Program

A U.S. government program aimed at detecting and preventing fraud and abuse in health care services and billing.

Objective

Something that one's efforts or actions are intended to attain or accomplish; a purpose or goal.

Ethical Coding

The practice of coding in a manner that is morally right and fair, ensuring reliability and integrity in data representation.

Upcoding

Using a code on a claim form that indicates a higher level of service, or a more severe aspect of disease or injury, than that which was actual and true.