To Protect Against the Risk of Declining Values of Foreign

question 30

Multiple Choice

To protect against the risk of declining values of foreign currencies, an investor could

• A) invest in foreign stocks with variable dividends.
• B) export more to the country.
• C) ignore it as there is no way to reduce the risk.
• D) buy units of the home currency in the forward market.

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Definitions:

Productive Members

Individuals who contribute effectively to their group, team, or society, often adding value through their work or participation.

Routine Performance

denotes the consistent execution of tasks or activities to a standard level of efficiency, often reflecting stable and predictable outcomes.

Creative

Characterized by the ability or power to create, often involving originality, expressiveness, or imagination.

Innovative

Characterized by the introduction of new ideas, products, or methods; showing creativity and originality.