1. To reduce or eliminate exchange rate risk, international buyers usually hedge future payment with

a. spot rates

b. forward rates

c. forward contracts

d. negotiations with the seller

2. The direct quote for British pounds is $1.50. If you tried to convert $3,000 into pounds, how many pounds would you obtain?

a. 3,500 pounds

b. 1,500 pounds

c. 2,000 pounds

d. 2,500 pounds