Which One of the Following Ways to Actively Manage Currency

question 22

Multiple Choice

Which one of the following ways to actively manage currency exposure usually results in little reduction in currency risk to a portfolio? Use of a(n)

• A) currency overlay manager who considers currency exposures alone
• B) jointly decided currency exposure and securities selection
• C) cash manager provided by the investors bank
• D) securities analyst who conducts research on economic fundamentals surrounding exchange rate changes

---

Definitions:

Creativity And Innovation

The process of generating new and novel ideas and turning them into value-creating products, services, or ways of doing things.

Innovation And Vision

The capacity to create novel ideas and the foresight to plan future directions or goals, especially in the context of business or technology.

Vision And Prescient

Describes the ability to have a clear idea about the future or foresee events before they happen.

Prescient And Creativity

The combination of having foresight or anticipation of future events and the ability to produce novel and valuable ideas.