Which of the following would NOT be considered a foreign exchange hedge?
A) The placement of large amounts of Canadian funds with a bank in Zurich, Switzerland.
B) A foreign currency futures contract.
C) A foreign currency option contract.
D) A forward exchange contract.

Question

Quizplus · Accepted Answer

Placing funds in a foreign bank is not a foreign exchange hedge. A hedge involves a specific financial instrument or strategy designed to reduce the risk of currency fluctuations.

Which of the Following Would NOT Be Considered a Foreign