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
Economics
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Every transaction concerning the exportation of U.S. goods constitutes a
A) demand for dollars, with no effect on markets for foreign currencies. B) supply of foreign currency, with no effect on the market for dollars. C) supply of foreign currency and demand for dollars. D) demand for foreign currency and a supply of dollars.
Economics
What are the functions for MC and AC if TC = 40 + 10q + 5q2?
A) MC = 10q; AC = 10 + 5q B) MC = 10 + 10q; AC = 40/q + 10 + 10q C) MC = 10 + 10q; AC = 40/q + 10q2 D) MC = 20 + 10q; AC = 40/q + 10q
Economics