A hedge is
A) a financial strategy that reduces the change of suffering losses arising from foreign exchange risk.
B) an exchange rate arrangement in which a country pegs the value of its currency to the exchange value.
C) the possibility that changes in the value of a nation's currency will result in variations in the market value of assets.
D) active management of a floating exchange rate on the part of a country's government.
A
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Assume the United States has an absolute advantage in the production of everything compared to the African nation of Berundi. Can you think of any reason why both nations would still find it to their mutual advantage to trade with each other?
What will be an ideal response?
Corporate governance involves the way in which
A) the government licenses corporations. B) a corporation is structured. C) the government nationalizes corporations. D) a corporation is subject to government regulations.
The consumer price index was 120 in 2013 and 126 in 2014 . The nominal interest rate during this period was 8 percent. What was the real interest rate during this period?
a. 3 percent b. 2 percent c. 3.3 percent d. 12.8 percent
The increase in total cost that results from producing one more unit of output is the marginal cost.
Answer the following statement true (T) or false (F)