Which of the Following Is Probably NOT an Example of the Use

question 8

Multiple Choice

Which of the following is probably NOT an example of the use of forward contracts by a multinational corporation MNC?

• A) Hedging pound payables by selling pounds forward
• B) Hedging peso receivables by selling pesos forward
• C) Hedging yen payables by purchasing yen forward
• D) All of the above are examples of using forward contracts

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Definitions:

Substitution

The act of replacing one good or service with another in response to changes in price or preference, affecting consumer choices and market demand.

MU/P

Refers to the marginal utility per price, a concept in economics that describes the additional satisfaction or utility that a consumer gains from consuming one more unit of a good or service, relative to its price.

Process Innovation

The implementation of a new or significantly improved production or delivery method.

Scientific Principles

Fundamental concepts or laws that are based on scientific evidence and reasoning, serving as the foundation for scientific research and understanding of the natural world.