An exporter can hedge against the possible decline in a foreign currency by purchasing
A) put options on the currency.
B) call options on the currency.
C) the currency on the spot market.
D) currency on forward contracts.
A
You might also like to view...
One of the underlying assumptions made when drawing the short-run aggregate supply curve is that: a. average wages and resource costs tend to be sticky in the short run
b. there are many buyers and sellers who are price takers. c. sellers offer differentiated products in the short run. d. capital is perfectly mobile between different industrial sectors in the short run.
Which of the following is true about advertising by a firm?
A. It is always successful in increasing demand for a firm's product. B. It attempts to increase demand and to make demand more inelastic. C. It reduces barriers to entry in a market. D. It is only used in the monopolistic competition market structure.
Indians and Indian-Americans have played a pivotal role in powering Silicon Valley's digital revolution. The emigration of talented people from countries like India to countries like the United States is often called:
A. credentialism. B. the brain drain. C. Malthusianism. D. outsourcing.
If the Federal Reserve is interested in conducting contractionary policy, what types of policies should it consider?
What will be an ideal response?