Hedging a position exposed to exchange-rate risk is the act of reducing or eliminating a net asset or net liability position in the foreign currency.
Answer the following statement true (T) or false (F)
True
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Under the Soviet system of communism
A) managerial pay was determined by the extent to which managers could lower the per-unit costs of production. B) the per-worker production function in the Soviet Union shifted up more rapidly than production functions in other countries. C) competitive pressures in the Soviet Union allowed the country's technological progress to keep pace with the rest of the world. D) technological progress was slow because managers had little incentive to develop new technologies.
Banks are financial intermediaries, which are institutions that operate between a saver who deposits money in a bank and a ____________ who receives a loan from that bank.
a. lender b. saver c. depositor d. borrower
Wages in most other countries have increased as a percentage of U.S. wages in the past 33 years
a. True b. False Indicate whether the statement is true or false
The rate at which a consumer is willing to substitute one good for another, while still maintaining a given level of satisfaction, is called the
A. budget constraint. B. average rate of substitution. C. marginal rate of substitution. D. market rate of substitution.