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.

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Definitions:

Closed Circulatory System

A circulatory system where blood is enclosed within vessels and circulates unidirectionally from the heart through the body and back to the heart.

Arthropod Success

The evolutionary success of arthropods, characterized by their adaptable exoskeleton, segmented bodies, and jointed limbs, making them the most diverse group of animals.

Jointed Appendages

Refers to appendages with joints, enabling movement, commonly found in arthropods such as insects, spiders, and crustaceans.

Nematocysts

Specialized cells in cnidarians, such as jellyfish, that eject a stinging thread for capturing prey or defense.