An exporter faced with exposure to a depreciating currency can reduce transaction exposure with a strategy of
A)paying or collecting early.
B)paying or collecting late.
C)paying late,collecting early.
D)paying early,collecting late.

Question

Quizplus · Accepted Answer

Paying late and collecting early allows an exporter to hold onto their home currency longer and convert foreign currency receivables into their home currency sooner, reducing the impact of currency depreciation.

An Exporter Faced with Exposure to a Depreciating Currency Can