When Referring to Foreign-Currency Transactions, Hedging Is a Process in Which

question 93

Multiple Choice

When referring to foreign-currency transactions, hedging is a process in which:

• A)a company protects itself from losing money in one transaction by engaging in a counterbalancing transaction.
• B)companies wager that the currency of one country will rise relative to their own.
• C)companies sell the same product in various countries at similar prices to minimize the currency risks associated with any one particular country.
• D)a company wagers that the currency of one country will fall relative to its own.

---

Definitions:

Sentiments

Complex feelings or emotions that reflect attitudes or beliefs towards certain subjects or situations.

Sacred

Describes something that is considered holy, divine, or of supreme importance, often with religious connotations.

Profane

In the sociological context of religion, it refers to that which is ordinary, not sacred, and outside the realm of religious significance.

Religious Fundamentalism

A strict adherence to specific theological doctrines typically in reaction against modernist interpretations of religion.