Q1 Flexible short term financial policies are not characterized by:

	A.	liberal credit policies.
	B.	large amounts of inventory held.
	C.	high levels of production stoppages.
	D.	quick delivery services for customers.

Q2 Suppose Montreal Import Company has to pay a foreign supplier 400,000 euros in one year and decides to hedge their position by entering into a forward contract. What is the appropriate forward position?

	A.	200,000 euro forward contract
	B.	400,000 short euro forward contract
	C.	not enough information provided to identify an answer
	D.	400,000 long euro forward contract