Which of the Following Is a Step Taken to Manage

question 104

Multiple Choice

Which of the following is a step taken to manage foreign exchange risk?

• A)Firms should focus solely on managing transaction and translation exposures.
• B)Forecasting future exchange rate movements should be avoided as it is speculative.
• C)Firms need to develop strategies for dealing with economic exposure.
• D)Firms should avoid central control of exposure.
• E)Firms should not distinguish between transaction and translation exposure and economic exposure.