Domestic firms do not have foreign exchange risk
Indicate whether the statement is true or false.
Answer: FALSE
Business
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What concept states that there is no systematic difference between the forward rate and the expected future spot rate, and that the expected forward market return is zero?
A) unbiased predictor B) unbiasedness hypothesis C) uncovered interest rate parity D) unsystematic risk
Business
When forecasting cash disbursements in the cash budget:
A) they count as a cash receipt until they are paid. B) they should be recorded in the month they will be paid. C) the disbursement should be recorded in the month the obligation was incurred. D) the money can be used for other purposes until it is due for disbursement.
Business