Fransen Co

question 13

Multiple Choice

Fransen Co. does a lot of businesses in Denmark. It has numerous trade accounts receivables and accounts payables that are to be settled in Danish krones. What type of hedge does Fransen have?

• A)Fair-value hedge
• B)Cash-flow hedge
• C)Natural hedge
• D)Hedge instrument

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Definitions:

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, commonly denoted as alpha (α).

Population Locations

Refers to the theoretical or actual positions of individuals or entities within a specified area or space; in statistics, it may involve the central tendencies of a population data set.

Independent Samples

Refers to groups in a study that are not related or paired, ensuring that measurements from one sample do not influence the measurements from another sample.

Wilcoxon Rank Sum Test

A nonparametric test used to determine whether two independent samples come from the same distribution.