All of the following are internal hedging techniques for foreign exchange exposure,except:
A) creating a natural hedge.
B) using leads and lags in FX transactions.
C) invoicing in the home currency.
D) using a swap.

Question

Quizplus · Accepted Answer

Using a swap is not an internal hedging technique; it is an external hedging technique that involves a contract with a financial institution or another party. Internal hedging techniques are actions that a company can take on its own, without needing to enter into contracts with external parties.

All of the Following Are Internal Hedging Techniques for Foreign