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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Definitions:

Odd-Even Pricing

A psychological pricing strategy where prices are set to just below a whole number to make the price appear significantly lower to consumers.

Deceptive Pricing Practices

Techniques used by sellers to mislead consumers about the true price of a product, making it seem cheaper than it actually is.

Retainer Fee

An upfront cost paid to secure the services of a consultant, freelancer, lawyer, or other professional for a specified period of time.

Barter

A system of exchange where goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money.