Pooling and third-party guarantees are two methods primarily designed to reduce international currency risk.

Question

Quizplus · Accepted Answer

Pooling and third-party guarantees are methods designed to manage or mitigate credit risk and liquidity risk, rather than specifically targeting international currency risk. International currency risk, or exchange rate risk, is more directly addressed through financial instruments like forward contracts, options, and swaps.

Pooling and Third-Party Guarantees Are Two Methods Primarily Designed to Reduce