Predictable exchange rates reduce the need for ________.
A) currency conversion
B) currency swap
C) currency depreciation
D) currency hedging

Question

Quizplus · Accepted Answer

Predictable exchange rates mean that the value of one currency in relation to another currency is stable over time. This reduces the need for currency hedging, which is a strategy used to protect against fluctuations in exchange rates. With predictable exchange rates, businesses and investors can more easily plan and forecast their financial activities across borders without the need to hedge against currency risks.

Predictable Exchange Rates Reduce the Need for ________