Question

1.

One strategy a company can follow to protect itself from currency fluctuations is use of:

Group of answer choices

a letter of credit.

risk retention.

forward market hedges.

All of the above

None of the above

2.

In 1996, the _____ was revised to a U.S. export policy stating that “everything is authorized unless it is specifically prohibited.”

Group of answer choices

Destination Control Statement

E.A.R.

pro forma invoice

Shipper’s Export Declaration

None of the above

3.

The risk resulting from possible fluctuations in currency exchange rates is called:

Group of answer choices

hedging.

transaction exposure.

the direct quote.

floating.

None of the above

4.

Some currencies are traded in the futures’ market as “commodities.”

Group of answer choices

True

False

5.

In the United States, the Wall Street Journal publishes the forward rates for the currencies of _____ countries.

Group of answer choices

twenty

twelve

six

four

None of the above

Answer 1

1. All of the above

[this is because all the three are effective strategies in tackling the currency fluctuations]

2. E.A.R.

[EAR or Export Administration Regulations was revised]

3. transaction exposure.

4. True

[this is because they are also considered as commodities during an exchange or transaction]

5. four

Note: If you liked the answer please give an Up-vote, this will be quite encouraging for me, thank you!