Firms Use Forward Foreign Exchange Contracts Rather Than a Cash-And-Carry

question 71

Multiple Choice

Firms use forward foreign exchange contracts rather than a cash-and-carry strategy because ________.

• A) of lower transaction costs
• B) of inability to borrow in different currencies
• C) of higher interest costs if credit quality is poor
• D) all of the above

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Definitions:

Seeing an Opportunity

Identification of a potential for growth or improvement within a specific context.

General Self-efficacy Scale

A psychological assessment tool designed to measure an individual's belief in their ability to succeed in various situations.

High Levels of Self-efficacy

A strong belief in one's own ability to complete tasks and achieve goals.

Persist

To continue steadfastly or firmly in some state, purpose, or course of action in spite of opposition, warnings, or setbacks.