Hedging Foreign Currency Transactions Can Be Accomplished By

question 81

Multiple Choice

Hedging foreign currency transactions can be accomplished by:

• A)equal amounts of receivables and payables in foreign currencies.
• B)the purchase of future contracts.
• C)the purchase of foreign currencies to be received in the future.
• D)all of the above.

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Definitions:

Distribution

The process or activity by which goods or services are spread or allocated across different areas or among various people.

Vertical Integration

Vertical Integration is a business strategy where a company expands its operations into different stages of production or distribution within its industry, often to control more of its supply chain.

Organizational Hierarchy

The structured arrangement of roles and responsibilities within an organization, typically depicted as a pyramid with the highest level of authority at the top.

Achieving Legitimacy

The process by which an entity gains acceptance and rightfulness in the eyes of its stakeholders, often through meeting certain standards or norms.