Hedgers,mostly _____________,Engage in Forward Contracts on the Foreign Exchange Markets

question 10

Multiple Choice

Hedgers,mostly _____________,engage in forward contracts on the foreign exchange markets to protect the home currency value of various foreign currency-denominated assets and liabilities on their balance sheets.

• A)commercial banks
• B)public utilities
• C)multinational corporations
• D)speculators

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Definitions:

Sales Quantity

The cumulative amount of a product or service's units that are purchased over a specified time frame.

Price Increase

A rise in the cost of goods or services.

Quantity Demanded

The total amount of goods or services that consumers are willing and able to purchase at a given price level.

Relatively Inelastic

A situation where the demand for a product does not change significantly with a change in the price.