________ Is NOT a Commonly Used Contractual Hedge Against Foreign

question 63

Multiple Choice

________ is NOT a commonly used contractual hedge against foreign exchange transaction exposure.

• A) Forward market hedge
• B) Money market hedge
• C) Options market hedge
• D) All of the above are contractual hedges.

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Definitions:

Legitimate Authority

The right to govern or make decisions granted through a formal position or through social acceptance, recognized as lawful and respectful.

Five Rules of Management

A set of principles aimed at improving management efficiency and effectiveness in an organization.

Henri Fayol

A French engineer and scholar who is best known for developing one of the earliest theories of management that emphasized management practices and the principles of organizing, commanding, coordinating, controlling, and planning.

Foresight

The ability to anticipate future events, trends, or consequences, allowing for better preparedness and strategic planning.