Buying Currency in the Forward Market Is a Common Method

question 37

True/False

Buying currency in the forward market is a common method of hedging currency risk.

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Definitions:

Gills

Respiratory organs found in many aquatic organisms, used for the exchange of gases (oxygen and carbon dioxide) with the water.

Bivalves

Bivalves are a class of marine and freshwater mollusks that have bodies enclosed by a shell consisting of two hinged parts.

Muscular Foot

A muscular structure found in many mollusks used for movement and anchoring.

Gastropods

A class of mollusks that includes snails and slugs, characterized by their univalve shell (in snails) and distinctive crawling locomotion.