
Which one of the following is a suggested method of reducing a U.S. importer's short-run exposure to exchange rate risk?
A) Entering a forward exchange agreement timed to match the invoice date
B) Investing U.S. dollars when an order is placed and using the investment proceeds to pay the invoice
C) Exchanging funds on the spot market at the time an order is placed with a foreign supplier
D) Exchanging funds on the spot market at the time an order is received
E) Exchanging funds on the spot market at the time an invoice is payable
Correct Answer:
Verified
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