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| Q. |
An example of cross-hedging is: |
| A. | find two currencies that are highly positively correlated; match the payables of the one currency to the receivables of the other currency. |
| B. | use the forward market to sell forward whatever currencies you will receive. |
| C. | use the forward market to buy forward whatever currencies you will receive. |
| D. | B and C |
| Answer» A. find two currencies that are highly positively correlated; match the payables of the one currency to the receivables of the other currency. | |
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