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.

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Definitions:

OD Efforts

Initiatives undertaken to improve an organization's effectiveness, health, and capacity through planned change in processes and structures.

Physical Setting

The environmental conditions and physical space in which an individual lives or operates.

Organizing Arrangements

A term referring to the methods and structures used to arrange, coordinate, and manage activities and tasks within an organization.

Processes

A series of actions, changes, or functions that bring about a result or are involved in the way something operates or works.