A Forward Market Hedge, a Company That Is Long a Foreign

question 39

Multiple Choice

a forward market hedge, a company that is long a foreign currency will _______ the foreign currency forward, whereas a company that is short a foreign currency will _______ the currency forward.

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

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Definitions:

Indirect Sequence

A communication strategy that presents supporting details and evidence before revealing the main idea or conclusion.

Neutral-News Messages

Communications that are intended to inform without showing bias or eliciting strong emotional reactions.

Inductive Sequence

A logic sequence that builds from specific instances to a general conclusion, often used in reasoning or in creating narratives.

Supporting Details

Information or evidence provided in a text to explain, prove, or reinforce the main point or argument.