A US Firm Could Issue Bonds Denominated in Euros and Partially

question 36

Multiple Choice

A U.S. firm could issue bonds denominated in euros and partially hedge against exchange rate risk by:

• A) invoicing its exports in U.S. dollars.
• B) requesting that any imports ordered by the firm be invoiced in U.S. dollars.
• C) invoicing its exports in euros.
• D) requesting that any imports ordered by the firm be invoiced in the currency denominating the bonds.

---

Definitions:

Conditioned Stimulus

An initially unimportant stimulus that, following its association with an unconditioned stimulus, comes to evoke a conditioned response.

Unconditioned Stimulus

A stimulus that naturally triggers a response without any prior learning.

Generalization

In psychology, the tendency to respond in the same way to different but similar stimuli; in learning, it's the application of past learning to new situations.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, gender, or disability.