Foreign currency exposures can be avoided by
A) Entering into forward contracts.
B) Denominating the transaction in domestic currency.
C) Exposure netting
D) Maintaining foreign currency accounts.
Correct Answer:
Verified
Q5: An interest rate cap is a series
Q6: FRAs can't+ be used for
A)Hedging.
B)Arbitraging.
C)Speculating.
D)Any of the
Q7: The true cost of hedging transaction exposure
Q8: Hedging with options is best recommended for
A)Hedging
Q9: A firm operating in India cannot hedge
Q11: The following method does not result in
Q12: Leading refers to
A)Advancing of receivables.
B)Advancing of payables.
C)Advancing
Q13: Translation exposure arises in respect of items
Q14: Translation loss is
A)A loss to the parent
Q15: The translation exposure is positive when
A)Exposed assets
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