Which of the Following Statements Are Correct

question 3

Multiple Choice

Which of the following statements are correct?
I. The usage of forward rates can help reduce the short-run exposure to exchange rate risk.
II. Accounting translation gains are recorded on the income statement as other income.
III. The long-run exchange rate risk faced by an international firm can be reduced if the firm borrows money in the foreign country where it has operations.
IV. Unexpected changes in economic conditions are classified as short-run exposure to exchange rate risk.

• A) I and III only
• B) II and IV only
• C) II and III only
• D) I and IV only
• E) I and II only

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Definitions:

Unfinished Business

Emotional issues or feelings from past events that have not been resolved, often affecting an individual's current mental health and relationships.

Counsel Families

Providing guidance and support to families facing challenges or issues, aiming to improve relationships and solve problems.

Group Counseling

A therapeutic approach where a small group of individuals meet regularly to discuss, interact, and address their issues with the guidance of a professional.

Emotional Reactivity

The extent to which an individual responds emotionally to situations, events, or interactions.