Which of the Following List Would Not Be Effective as a Hedge

question 16

Multiple Choice

Which of the following list would not be effective as a hedge for a Canadian company with a large number of transactions in Denmark?

• A)Danish krone held by a Canadian bank.
• B)A forward contract for the purchase of Danish krone.
• C)A forward contract for the sale of Danish krone.
• D)Canadian funds held by a Danish bank.

Analyze the impact of stock issuance and investments on stockholders' equity and assets.

Identify the effects of purchasing assets with cash or financing on the balance sheet.

Comprehend the treatment of stockholders' equity in different transactions.

Apply the dual effects concept to accounting transactions.

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Definitions:

Leadership

The action of leading a group of people or an organization, or the ability to do this.

Motivate

To provide someone with a reason or incentive to do something.

Group's Success

The achievement of goals and objectives by a collective group, often measured by collective productivity or by achieving shared aims.

Personnel Psychology

A branch of psychology that focuses on the study of human behavior in workplaces, including recruitment, selection, and employee evaluation.