By increasing _____ before imminent depreciation of a currency instead of holding cash, the firm may reduce its exposure to currency depreciation losses.
A)buying power
B)plant and equipment
C)trucks
D)materials handling equipment (such as forklifts)
E)inventory

Question

Quizplus · Accepted Answer

By increasing inventory before an imminent depreciation of a currency, a firm can reduce its exposure to currency depreciation losses. This is because the firm is converting cash, which will lose value due to the depreciation, into physical goods that may retain value or even appreciate in price.

By Increasing _____ Before Imminent Depreciation of a Currency Instead