Question 17 (1 point) If interest rate parity (IRP) exists, then the money market hedge will yield the same result as the options hedge. 1) True 2) False Question 18 (1 point) Which of the following is an example of economic exposure but not an example of transaction exposure? 1) An increase in the dollar's value hurts a U.S. firm's domestic sales because foreign competitors are able to increase their sales to U.S, customers 2) An increase in the pound's value increases the U.S. firm's cost of British pound payables. 3) A decrease in the peso's value decreases a US. firm's dollar value of peso receivables A1 A decrease in the Swiss franc's value decreases the dollar value of interest payments on a Swiss deposit sent to a U.S. firm by a Swiss bank 4 5 8 9