Currency Futures Can Be Used by MNCs to Hedge Payables

question 62

Multiple Choice

Currency futures can be used by MNCs to hedge payables. That is, an MNC would ____ futures to hedge a foreign payable position. Also, currency futures can be used for speculation. For example, a speculator expecting a currency to appreciate would ____ futures.

• A) buy; buy
• B) sell; sell
• C) buy; sell
• D) sell; buy

---

Definitions:

Testing Effect

is a psychological phenomenon where the act of retrieving information from memory through testing enhances long-term memory retention.

Enhanced Memory

Improved recall or recognition of information compared to typical or average memory performance.

Repeated Retrieval

A practice involving the frequent retrieval of information from memory over time, which enhances memory consolidation and retention.

Functionalist

Related to a perspective in sociology and psychology that emphasizes the importance of understanding the purpose or function of societal institutions or mental processes.