The Use of the Forward Market and Swaps to Protect

question 97

Multiple Choice

The use of the forward market and swaps to protect against foreign exchange risk has increased markedly since:

• A)the breakdown of the gold standard.
• B)the collapse of the Bretton Woods system in 1973.
• C)the end of the Plaza Accord.
• D)the Louvre Accord ended in 1968.

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Definitions:

Valuable Goods

Items or resources that are considered of high value in economic, cultural, or personal terms.

Large-Scale Production

Refers to the manufacture of large quantities of products in efficient and cost-effective methods, often using automation and sophisticated technology.

Environmental Destruction

The degradation of the environment through depletion of resources such as air, water, and soil; the destruction of ecosystems; habitat destruction; the extinction of wildlife; and pollution.

Impoverishment

The condition of being poor or lacking the necessary means of subsistence and financial resources.