Which of the following is NOT identified by your authors as a proactive management technique to reduce exposure to foreign exchange risk?
A)Matching currency cash flows.
B)Currency swaps.
C)Remaining a purely domestic firm.
D)Parallel loans.

Question

Quizplus · Accepted Answer

Remaining a purely domestic firm is not a proactive management technique to reduce exposure to foreign exchange risk. In fact, it can increase a firm's risk by limiting its ability to diversify and access new markets. Matching currency cash flows, currency swaps, and parallel loans are all proactive techniques used to reduce foreign exchange risk.

Which of the Following Is NOT Identified by Your Authors