The Approach to Managing Exchange Risk Which Involves Setting a Policy

question 45

Multiple Choice

The approach to managing exchange risk which involves setting a policy concerning the desired level of risk is known as ___ currency management.

• A) active
• B) pro-active
• C) hedging
• D) passive

---

Definitions:

Gain On Disposal

The profit realized from the sale of a fixed asset, such as machinery or real estate, above its book value.

Accumulated Depreciation

Refers to the total amount of depreciation expense that has been recorded for an asset since it was acquired, representing the asset's wear and tear over time.

Batting Cages

An enclosed area for baseball or softball players to practice batting, usually equipped with a pitching machine.

Trademark

A name, term, or symbol used to identify a business and its products.