Internal techniques of managing forex risk includes all of the following, except _______________
A)Leading and Lagging
B)Matching
C)Split Currency invoicing
D)Forward and Future contracts

Question

Quizplus · Accepted Answer

Leading and lagging, matching, and split currency invoicing are all internal techniques used by companies to manage their foreign exchange risk. Forward and future contracts, however, are external financial instruments used to hedge against forex risk. These contracts are agreements to buy or sell a currency at a future date at a predetermined price and are traded on exchanges or over-the-counter, not managed internally within the company's operations.

Internal Techniques of Managing Forex Risk Includes All of the Following