Using currency futures and forwards, having assets and liabilities in the same currency, partnering with a firm that can handle currency issues, and having both production and sales in the same currency are all methods of managing _____ risk.

Question

Quizplus · Accepted Answer

These methods are strategies to manage currency risk, which involves minimizing the potential negative impact of fluctuations in exchange rates on a company's financial performance.

Using Currency Futures and Forwards, Having Assets and Liabilities in the Same