The following is an example of Radio Shack hedging its foreign currency risk
A. needing to pay 9,000 yen per radio to its suppliers in a month, Radio Shack makes a forward exchange deal to buy yen
B. needing to pay 9,000 yen per radio to its suppliers in a month, Radio Shack makes a forward-exchange deal to sell yen.
C. needing to pay 9,000 yen per radio to its suppliers in a month, Radio Shack buys yen at a spot-exchange 1 month from now.
D. needing to pay 9,000 yen per radio to its suppliers in a month, Radio Shack sells yen at a spot-exchange 1 month from now.
查看答案
A foreign currency ________ contract calls for the future delivery of a standard amount of foreign exchange at a fixed time, place, and price.
A. futures
B. forward
C. option
D. swap
Financial derivatives are powerful tools that can be used by management for purposes of
A. speculation
B. hedging
C. human resource management
D. A and B above
Domestic currencies of one country on deposit in a second country are called ________.
A. export deposits
B. eurocurrencies
C. import deposits
D. forocurrencies
Discuss the concept of the "Impossible Trinity". If a country chooses to have a pure float exchange rate regime, which two of the three goals is a country most able to achieve?
A. monetary independence and exchange rate stability
B. exchange rate stability and full financial integration
C. full financial integration and monetary independence
D. A country cannot attain any of the exchange rate goals with a pure float exchange rate regime.