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:

Yield

The income return on an investment, such as the interest or dividends received from holding a particular security.

Price

The amount of money required to purchase a good, service, or asset.

Coupon

Represents the interest payment that a bond issuer owes to the bondholders, typically expressed as an annual percentage of the bond's face value.

Bond B

Refers to a specific class or series of bond, which may be characterized by its rank, terms, issuing entity, or other defining features.