Speculation is the opposite of hedging
Indicate whether the statement is true or false
TRUE
Explanation: While a speculator accepts a foreign exchange risk in the hope of making a profit, a hedger tries to avoid a foreign exchange risk through hedging.
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The forward exchange rate is relevant to transactions ________
A) that require an immediate transfer of funds B) that require a future transfer of funds C) that involve a transfer of funds within a corporate entity D) crossing state lines
Explain why in the long run a firm that is cost minimizing will choose K and L where:
w/MPL = r/MPK What does this tell you about the marginal cost of increasing output through hiring labor and the marginal cost of increasing output through adding capital?
The most commonly used measures of elasticity are
A. income elasticity of demand and price elasticity of supply. B. price elasticity of demand and price elasticity of supply. C. cross-price elasticity of demand and cross-price elasticity of supply. D. price elasticity of demand and cross-price elasticity of supply.
According to the graph shown, if this economy were an autarky, producers would enjoy area:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. BCEFG
B. BCDEFG
C. G
D. EFG