Which of the following about foreign exchange objectives for a large company is incorrect?
A) An FX strategy that requires a company to hedge a defined percentage of its identified FX exposures at all times is called a defensive strategy.
B) A company document should state whether it will have a centralised or decentralised FX operation.
C) A firms' FX function is part of the organisation's treasury division.
D) Strategies that require a company to analyse and forecast movements in FX markets and then apply based on its forecasts are called hedging strategies.

Question

Quizplus · Accepted Answer

Strategies that require a company to analyze and forecast movements in FX markets and then apply based on its forecasts are not called hedging strategies. Hedging strategies involve the use of financial instruments to reduce the impact of currency fluctuations on a company's business operations.

Which of the Following About Foreign Exchange Objectives for a Large