Your U.S.-based company is doing business internationally. One way to mitigate exchange rate risk is to
A) require payment in US$.
B) use a forward contract.
C) use a futures contract.
D) All of the above.
D
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At the current point of production on a nation's production possibilities frontier, the marginal benefit of a slice of pizza is 500 tacos per slice of pizza while the marginal cost of producing a slice of pizza is 750 tacos per slice of pizza
To be allocatively efficient, what should be done?
How does the Fed intervene in the foreign exchange market and what the effects are of the Fed's actions?
What will be an ideal response?
Which of the following abilities should an economic model possess?
a. It should lower the time cost of information collection. b. It should help individuals to discern the information that matters for a problem. c. It should be able to process both untrue or impossible to verify information as well as correct information in the data set. d. It should suggest accurate solutions for a problem.
If the loanable funds market pays 8 percent and you want to earn $1,000 a year of interest income, how much in loanable funds must you supply to the market in order to accomplish this?
a. $8,000 b. $10,000 c. $14,000 d. $12,500 e. $18,000