Question
1.Borrow the currency denominating the receivables, convert it to the local currency and invest it. Then pay off the loan with cash inflows from the
1.Borrow the currency denominating the receivables, convert it to the local currency and invest it. Then pay off the loan with cash inflows from the receivables.This technique for hedging transaction exposure is called:
Select one:
a.money market hedge
b.futures hedge
c.forward hedge
d.currency options hedge
e.None of these
2.______________and _____________ are offered by a foreign borrower to investors in a national capital market denominated in the nation's currency.
Select one or more:
a.Samurai bond
b.Kangaroo bond
c.Eurobond
d.Dim sum bond
e.Masala bond
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