Which of the following is NOT a reason a company would deal in foreign exchange?
A)to pay or receive dividends in a foreign currency
B)to speculate on possible future movements in a currency
C)to buy and sell merchandise denominated in a foreign currency
D)to import merchandise denominated in its currency rather than the currency of the exporter

Question

Quizplus · Accepted Answer

Dealing in foreign exchange is not necessary if a company is importing merchandise denominated in its own currency, as there would be no need to exchange currencies. The other options all involve transactions that may require foreign exchange dealings.

Which of the Following Is NOT a Reason a Company