The following method does not result in sharing of an exchange risk between importer and exporter
A) Denominating in a third currency.
B) Denominating partly in importer's currency and partly in exporter's currency.
C) Entering a exchange rate clause in the contract.
D) Denominating in domestic currency.
Correct Answer:
Verified
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
Q10: Foreign currency exposures can be avoided by
A)Entering
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
Q16: For the purpose of translations, current rate
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