Traders on the Foreign Exchange Market Use ___________ to Eliminate

question 6

Multiple Choice

Traders on the foreign exchange market use ___________ to eliminate or cover the risk of loss on export or import orders denominated in foreign currencies.

• A)currency options
• B)forward contracts
• C)money-market hedges
• D)currency futures contracts

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Definitions:

Bailee

A person or entity who is given temporary possession but not ownership of a property or goods for a specific purpose.

Bailed Property

Property that is in the custody of one party but belongs to another, under an agreement for its return or safeguarding.

Public Policy

The principles, often unwritten, on which social laws are based, guiding the governing bodies in their management and administration of the nation.

Bailee

An individual or entity given temporary custody of someone else's property under a bailment agreement.