Your U.S.-based company is selling parts to a company in Bangladesh. If the Bangladeshi company purchases a futures contract

A) the Bangladeshi company bears the exchange rate risk.
B) your company bears the exchange rate risk.
C) the companies share in the exchange rate risk.
D) there is no exchange rate risk.

D

Economics

You might also like to view...

Assume Congress decides that Social Security taxes must increase in order to fund the system. This would

A) shift up the marginal cost curve for any firms that hire labor. B) guarantee a decrease in profits. C) shift up the average fixed cost curve for any firms that hire labor. D) guarantee an increase in tax revenues.

Economics

For the Fed to fully eliminate the costs of inflation, how low does the inflation rate need to be?

a. 0 percent b. 3 percent c. 5 percent d. 6 percent

Economics