Which of the Following Statements Is Correct

question 66

Multiple Choice

Which of the following statements is correct?

• A) The majority of trade transactions and international finance transactions are conducted in hard currencies, such as the USD, euro and sterling.
• B) The advantage of diversifying the currency spread of a company's transactions is enhanced if the foreign currencies have a highly positive correlation.
• C) Leading refers to changing the timing of a cash flow so it takes place prior to the originally agreed date.
• D) Counter-trade refers to an arrangement in which two companies, each exposed to FX risk, enter into an arrangement whereby they exchange one product for another.

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Definitions:

Secure Attachment

A form of attachment where individuals feel confident and reassured in their relationships with their caregivers, leading to healthy emotional and social development.

Responsive Approach

A method or strategy that adapts based on feedback or changes in the situation.

Hazan and Shaver

Psychologists who developed the theory that romantic love in adulthood follows the same attachment patterns individuals have as children with their caregivers.

Adults

Individuals who have reached the age of majority, typically defined in terms of legal responsibilities, physiological development, and social standing.