Consider These Five Statements

question 2

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.
How many of these statements are true and how many are false?

• A) 4 statements are true and 1 is false
• B) 3 statements are true and 2 are false
• C) 2 statements are true and 3 are false
• D) 1 statement is true and 4 are false

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Definitions:

Immigration Critics

Individuals or groups that express opposition or concerns regarding the policies, levels, or effects of immigration in a society.

Race Views

Perspectives and attitudes towards race and racial differences, including theories of racial superiority and racism.

Revolutionary Era

The period during the late 18th century in which the Thirteen Colonies in North America fought for and gained independence from Britain, creating the United States.

Religious Conflicts

Religious conflicts are disputes or wars primarily rooted in differences in religious beliefs and practices, sometimes leading to prolonged violence between communities or nations.