Purchasing an Option to Buy Foreign Currency at a Predetermined

question 35

Multiple Choice

Purchasing an option to buy foreign currency at a predetermined exchange rate in order to reduce exchange risk is called:

• A) transfer pricing.
• B) hedging.
• C) translating.
• D) cross-listing.

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Definitions:

Joint Venture

An arrangement in which two or more entities decide to combine their assets to achieve a particular goal.

Management Responsibilities

Entail the duties and tasks managers are expected to perform in directing an organization, including planning, organizing, leading, and controlling.

Share Profits

The distribution of a portion of a company's earnings to its shareholders, typically in the form of cash payments or additional shares.

UCC

Represents the Uniform Commercial Code, a complete collection of legislation that regulates every commercial transaction across the United States.