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Which one of the following is a suggested method of reducing a U.S. importer's short-run exposure to exchange rate risk? Answer entering a forward exchange
Which one of the following is a suggested method of reducing a U.S. importer's short-run exposure to exchange rate risk?
Answer entering a forward exchange agreement timed to match the invoice date | ||
investing U.S. dollars when an order is placed and using the investment proceeds to pay the invoice | ||
exchanging funds on the spot market at the time an order is placed with a foreign supplier | ||
exchanging funds on the spot market at the time an order is received | ||
exchanging funds on the spot market at the time an invoice is payable |
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