Most International Companies Purchase Hedges to Monitor Its Exposure to

question 25

Multiple Choice

Most international companies purchase hedges to monitor its exposure to

• A)interest rate changes.
• B)currency fluctuations.
• C)commodities price fluctuations.
• D)stock price fluctuations.

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Definitions:

Ability-to-Pay Principle

A tax principle suggesting that taxes should be levied based on the taxpayer's ability to pay, where those with higher income or wealth should pay more taxes.

Tax Burdens

The measure of the financial impact of taxes on individuals, households, or businesses, typically reflecting the total taxes paid as a percentage of income.

Taxation Theory

The study of how taxes affect the economy, focusing on the optimal design of tax policies to achieve various economic objectives.

Net Worth

The total value of all assets owned by an individual or organization minus any liabilities or debts.