Which of the Following Statements Are Correct

question 3

Multiple Choice

Which of the following statements are correct?
I. The usage of forward rates can help reduce the short-run exposure to exchange rate risk.
II. Accounting translation gains are recorded on the income statement as other income.
III. The long-run exchange rate risk faced by an international firm can be reduced if the firm borrows money in the foreign country where it has operations.
IV. Unexpected changes in economic conditions are classified as short-run exposure to exchange rate risk.

• A) I and III only
• B) II and IV only
• C) II and III only
• D) I and IV only
• E) I and II only

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Definitions:

Androgynous

Possessing or exhibiting both traditionally masculine and traditionally feminine qualities, traits, or characteristics.

Feminine

Relating to qualities or attributes regarded as characteristic of women or girls.

Androgynous

Describing a person or trait that has both masculine and feminine characteristics, challenging traditional gender roles.

Androgyny Scale

A measure used to assess the presence of both masculine and feminine characteristics in individuals.