In order to protect against foreign exchange risk, firms can use
A) the spot market for foreign exchange.
B) interest rate arbitrage.
C) purchasing power parity.
D) the forward market for foreign exchange.
E) the J-curve.
D
Economics
You might also like to view...
Capital is best considered as:
A) the natural environment. B) a factor of production that has been produced. C) financial assets. D) money.
Economics
Suppose the US is in a recession while foreign countries that trade with the US are not. How will this affect the US?
A. US imports will fall, US exports will rise, and AD will fall B. US imports will fall, US exports will rise, and AD will rise C. US imports will rise, US exports will fall, and AD will fall D. US imports will fall, US exports will fall, and AD will remain unchanged
Economics