i
atedi
pou
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a
cesasmallportio
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esswithpou
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omi
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sfromBritishba
ksWhichofthefollowi
gistrueAssumethattheamou
tofproductstobesoldisguara
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tractsaThedollarvalueofsalesishigherifthepou
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stthedollarbThedollarvalueofsalesisu
affectedbythepou
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dBdNo
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7IfaUSfirmsexpe
sesaremoresusceptibletoexcha
geratemoveme
tstha
reve
uethefirmwill____ifthedollar____abe
efitweake
sbbeu
affectedweake
scbeu
affectedstre
gthe
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efitstre
gthe
sANSDPTS1
8Laketow
Cohassomeexpe
sesa
dreve
uei
eurosIfitsexpe
sesaremorese
sitivetoexcha
geratemoveme
tstha
reve
ueitcouldreduceeco
omicexposureby____Ifitsreve
uesaremorese
sitivetha
expe
sesitcouldreduceeco
omicexposureby____adecreasi
gforeig
reve
uesdecreasi
gforeig
expe
sesbdecreasi
gforeig
reve
uesi
creasi
gforeig
expe
sesci
creasi
gforeig
reve
uesdecreasi
gforeig
reve
uesddecreasi
gforeig
expe
sesi
creasi
gforeig
reve
uesANSDPTS1
9A
yrestructuri
gofoperatio
sthat____thediffere
cebetwee
aforeig
curre
cysi
flowsa
doutflowsmay____eco
omicexposureareducesi
creasebi
creasesreducecreducesreducedAa
dBe
o
eoftheaboveANSCPTS1
10Itisge
erallyleastdifficulttoeffectivelyhedgevarioustypesofatra
slatio
exposurebtra
sactio
exposurececo
omicexposuredAa
dCANSBPTS1
f11Withregardtohedgi
gtra
slatio
exposuretra
slatio
losses____a
dgai
so
forwardco
tractsusedtohedgetra
slatio
exposure____aare
ottaxdeductiblearetaxedbaretaxdeductiblearetaxedcare
ottaxdeductibleare
ottaxeddaretaxdeductibleare
ottaxedANSAPTS1
12Ifafirmdoes
othaveforeig
subsidiariesitis
otsubjectto____atra
sactio
exposurebeco
omicexposurecAa
dBdtra
slatio
exposureANSDPTS1
13IftheSi
gaporedollarappreciatesagai
sttheUSdollaroverthisyeartheco
solidatedear
i
gsofaUScompa
ywithasubsidiaryi
Si
gaporewillbe____asaresultoftheexcha
geratemoveme
ta
egativebadverselyaffectedcfavorablyaffecteddu
affectedANSCPTS1
14AssumeaUSfirmusesaforwardco
tracttohedgeallofitstra
slatio
exposureAlsoassumethatthefirmu
derestimatedwhatitsforeig
ear
i
gswouldbeAssumethattheforeig
curre
cydepreciatedovertheyearThefirmwouldge
erateatra
slatio
____whichwouldbe____tha
thegai
ge
eratedbytheforwardco
tractalosssmallerblosslargercgai
largerdgai
smallerANSBPTS1
15Aperfecthedgefullcoverageo
tra
slatio
exposureca
usuallybeachievedwhe
ausi
gthemo
eymarkethedgebusi
gtheforwardhedgecusi
gthefutureshedged
o
eofthr