When a Buyer Locks in an Exchange Rate and Avoids

question 33

Multiple Choice

When a buyer locks in an exchange rate and avoids the risk of currency fluctuations, it is called:

• A) the spot market.
• B) the gray market.
• C) vertical purchasing.
• D) hedging.
• E) factoring.

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Definitions:

Phalanges

The bones of the fingers and toes in human anatomy, crucial for grip, manipulation of objects, and locomotion.

Metacarpals

The five long bones found in the hand that connect the wrist to the fingers, playing a key role in hand movements.

Tarsals

A group of seven bones in the foot located between the lower leg bones and the metatarsals, contributing to foot structure and movement.

Fibula

A smaller of the two bones in the lower leg, situated on the lateral side of the tibia.