Which of the Following Is NOT an Example of How

question 27

Multiple Choice

Which of the following is NOT an example of how a company could hedge to reduce currency risk?

• A) Buying futures contracts
• B) Buying options
• C) Currency swaps
• D) Fixed peg arrangements

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.

Total Debts

The sum of all financial obligations owed by an individual or organization, including both short-term and long-term liabilities.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business, whichever is longer.

Current Liabilities

The obligations a company owes and is expected to pay within one year, including accounts payable, short-term loans, and other similar debts.