To Protect Against Loss as a Result of Adverse Currency

question 95

Multiple Choice

To protect against loss as a result of adverse currency fluctuations, an export firm may:

• A)demand cash settlement
• B)sell a millennial contract as a hedge
• C)require the customer to make payment in the exporter's currency
• D)require a government guarantee against currency loss of value
• E)none of the above

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Definitions:

Net Primary Productivity

The rate at which plants in an ecosystem produce net useful chemical energy; essentially, the amount of biomass created minus the amount used by plants for respiration.

Phytoplankton

Microscopic plant-like organisms that live in aquatic environments, forming the base of many aquatic food webs and producing a significant portion of Earth's oxygen.

Lake Turnover

The seasonal process in lakes where water layers mix, redistributing oxygen from the surface and nutrients from the bottom.

Temperate Lake

A lake located in a temperate climate zone, experiencing moderate temperatures and distinct seasonal changes.