An Exporter Can Share Exchange Rate Risk with Their Customers

question 31

Multiple Choice

An exporter can share exchange rate risk with their customers by

• A)invoicing in their customer's local currency.
• B)splitting the difference, and invoicing half of sales in local currency and half of sales in home currency.
• C)invoicing sales in a currency basket such as the SDR as the invoice currency.
• D)both b and c

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Definitions:

Intimacy

The sense of closeness and attachment resulting from a deep understanding and mutual affection between individuals, often developed through sharing personal thoughts, feelings, and experiences.

Emotionally Close Relationships

Bonds between individuals characterized by deep affection, trust, mutual support, and strong emotional connections.

Pubertal Development

The physical changes during adolescence that lead to sexual maturity, including growth spurts and development of secondary sexual characteristics.

Hormones

Chemical messengers that are manufactured by the endocrine glands, travel through the bloodstream, and affect other tissues.