If a Firm Must Pay for Goods It Has Ordered

question 97

Multiple Choice

If a firm must pay for goods it has ordered with foreign currency,it can hedge its foreign exchange rate risk by

• A) selling foreign exchange futures short.
• B) buying foreign exchange futures long.
• C) staying out of the exchange futures market.
• D) doing none of the above.

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Definitions:

Venous Stasis

A condition of slow blood flow in the veins, usually in the legs, which can lead to blood clots and swelling.

Pulmonary Emboli

Obstructions in the pulmonary artery or its branches caused by blood clots that travel to the lungs, potentially leading to life-threatening conditions.

Hand Washing

The act of cleaning hands with water and soap or hand sanitizer to remove germs, bacteria, and viruses to prevent illness.

Vaccination Schedules

Planned timelines for administering vaccines to protect against specific diseases starting from infancy.