1. The foreign exchange system that has the highest foreign exchange risk is A.the Gold Standard...
1. The foreign exchange system that has the highest foreign exchange risk is
A.the Gold Standard
B.the Bretton Woods system.
C.the fixed exchange rate.
D.the floating exchange rate.
2. If an exporter wants to limit the effect of possible changes in the exchange rate on the value of her exports, then she can adopt a strategy known as
A.floating.
B.appreciating.
C.speculating.
D.hedging.
Homework Answers
1. The foreign exchange system that has the highest foreign exchange risk is
option D.the floating exchange rate.
2. If an exporter wants to limit the effect of possible changes in the exchange rate on the value of her exports, then she can adopt a strategy known as
option D.hedging.
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