1. Which of the following management techniques is likely to best offset the risk of long-run exposure to payables denominated in particular foreign currency?

a) None of the above

b) Lend money in the foreign currency in question

c) Find more firms in the foreign market to supply your firm with production inputs

d) Sell forward the foreign currency in question.

e) Borrow money in the home currency and convert to the foreign currency.

2. A German commercial bank: a) makes a Canadian dollar-denominated loan to a Canadian client, b) issues a sterling-denominated bond in London, c) issues a euro-denominated bond in the US. These transactions represent in order:

a) A eurocredit, a foreign bond, and a eurobond.

b) A euroloan, a eurobond, and a Yankee bond.

c) A euroloan, a yankee bond, and a eurobond.

d) None of the above

e) A euroloan, a foreign bond, and a foreign bond.