Some firms use "leads" or "lags" to re-time the transfer of funds in international transactions. To benefit from changing exchange rates, firms holding a ________ currency will ________ their payments in an effort to maintain ownership of the strengthening currency as long as possible.

Question

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Firms holding a hard (strong) currency will lag their payments to keep the strengthening currency longer, benefiting from its increasing value.

Some Firms Use "Leads" or "Lags" to Re-Time the Transfer