Explain,using Simple Numerical Example(s),how Hedging a Foreign Currency Transaction Can

question 24

Essay

Explain,using simple numerical example(s),how hedging a foreign currency transaction can remove uncertainty about the outcome of the transaction.Based on the same example(s),illustrate both how hedging can prevent a business from incurring a loss because of movements in exchange rates and also how it can cause a business to miss out on a potential gain from such movements.

Understand the evolutionary significance of emotions like disgust.

Comprehend theories related to eating behaviors, including bin theory and sensory-specific satiety.

Gain insights into the physiological regulation of hunger through the roles of different brain regions and hormones.

Understand the psychological and environmental factors influencing eating behaviors and sexual orientation.

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Definitions:

Milton Friedman

An American economist and Nobel laureate renowned for his research on consumption analysis, monetary history and theory, and the complexity of stabilization policy.

Rational Expectationists

Economists who believe that individuals make decisions based on their rational outlook, available information, and past experiences.

Monetary Policy

The process by which the monetary authority of a country controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency.

Say's Law

An economic principle that asserts that supply creates its own demand, meaning that production of goods and services creates an equal amount of demand for those goods and services.