A lag strategy involves
A) delaying the collection of foreign currency receivables when a foreign currency is expected to appreciate.
B) delaying the collection of foreign currency receivables when a foreign currency is expected to depreciate.
C) attempting to collect foreign currency receivables early when a foreign currency is expected to appreciate.
D) paying foreign currency payables (to suppliers) before they are due when a currency is expected to appreciate.
E) paying foreign currency payables (to suppliers) before they are due when a currency is expected to depreciate.

Question

Quizplus · Accepted Answer

When a foreign currency is expected to appreciate, delaying the collection of foreign currency receivables can result in receiving more in the domestic currency when the receivables are eventually collected.

A Lag Strategy Involves