The Firm That Enters into a Futures Contract with Respect

question 134

Multiple Choice

The firm that enters into a futures contract with respect to foreign exchange does so:

• A)to offset possible loss in its collection process by a gain in the delivery process of the futures contract
• B)in anticipation of an increase in the value of the currency of the country for which the contract is established Could be correct, too.Depends if they are paying or receiving.
• C)to decrease the cost of their sales transactions
• D)to eliminate a loss in the collection process of their accounts receivable in that country

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Definitions:

Nonstage Theories

Cognitive development theories that argue against the idea of distinct, universal stages of cognitive growth, suggesting instead that development is a more continuous and fluid process.

Gradual Acquisition

The slow and steady process of learning or obtaining knowledge or skills over time.

Memory Capacity

The amount of information that can be held in memory, encompassing short-term, long-term, and working memory capacities.

Attentional Focus

Refers to the process of directing one's awareness to relevant stimuli while ignoring irrelevant information in the environment.