A ____ Is Not Normally Used for Hedging Long-Term Transaction

question 40

Multiple Choice

A ____ is not normally used for hedging long-term transaction exposure.

• A) long-term forward contact
• B) futures contract
• C) currency swap
• D) parallel loan

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Definitions:

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Income

The amount of revenue that remains after deducting the costs, expenses, and taxes related to earning that revenue.

Break-even Point

The point at which total costs and total revenue are equal, meaning there is no net loss or gain, and one is "breaking even."

Contribution Margin

The amount remaining from sales revenue after all variable expenses are deducted, indicating how much contributes to covering fixed costs and generating profit.