Which One of the Following Is a Suggested Method of Reducing

question 39

Multiple Choice

Which one of the following is a suggested method of reducing a U.S.importer's short-run exposure to exchange rate risk?

• A)entering a forward exchange agreement timed to match the invoice date
• B)investing U.S. dollars when an order is placed and using the investment proceeds to pay the invoice
• C)exchanging funds on the spot market at the time an order is placed with a foreign supplier
• D)exchanging funds on the spot market at the time an order is received
• E)exchanging funds on the spot market at the time an invoice is payable

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