1. The CFO of TWICE Inc. raised a concern to top management regarding the concentration of the companies payables in euro (EUR) arising from the numerous loans written by a German bank. In order to appropriately manage the foreign exchange risk arising from this - the CFO recommended that the company should begin to increase its inflow of EUR by shifting some revenue sources in the European region. This is an example of a/an __________ strategy.

A). Hedging

B). Arbitrage

C). Restructuring

D). Covered Arbitrage

2. The following are techniques used in forecasting exchange rates, EXCEPT:

A). Purchasing Power Parity

B). Technical Analysis

C). Fundamental Analysis

D). Market-Based Forecasting