Internal hedges of currency risk are most likely to be found in ______.
A) diversified multinational corporations
B) domestic corporations
C) exporters
D) government agencies
E) importers

Question

Quizplus · Accepted Answer

Diversified multinational corporations are likely to have internal hedges of currency risk in place as they operate in multiple countries and deal with various currencies. Domestic corporations may not have the need for such hedges as they primarily operate in their local currency. Exporters may use external hedges to manage currency risk. Government agencies may have a need for currency hedges depending on the nature of their operations. Importers may use external hedges to manage currency risk.

Internal Hedges of Currency Risk Are Most Likely to Be