To Hedge a ____ in a Foreign Currency, a Firm

question 79

Multiple Choice

To hedge a ____ in a foreign currency, a firm may ____ a currency futures contract for that currency.

• A) receivable; purchase
• B) payable; sell
• C) payable; purchase
• D) none of the above

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Definitions:

Business Brokers

A business intermediary that brings sellers of their businesses together with potential buyers.

Newspapers

Periodical publications containing written information on current events, news, articles, and advertisements, often published on a daily or weekly basis.

Thinning The Assets

A process of selectively selling off or disposing of less productive, less profitable, or underutilized assets by a company to improve financial health or operational efficiency.

Holdback Money

Funds retained by one party in a transaction as a safeguard to ensure some form of compliance or completion by the other party.