1. Fair value hedges are designated in order to hedge exposure to potential changes in anticipated cash flows. True or False?

2. A foreign currency hedge may be designated as a fair value hedge, a cash flow hedge, or a hedge of a net investment in foreign operations. True or False?

3. The spot rate can be defined as: (select one)

a. The estimated exchange rate for 30 days from now

b. The exchange rate used on the financial reporting date

c. The exchange rate for today (or an immediate transaction).