Which of the following is NOT identified by your authors as a proactive management technique to reduce exposure to foreign exchange risk?
A) matching currency cash flows
B) currency swaps
C) remaining a purely domestic firm
D) parallel loans

Question

Quizplus · Accepted Answer

Remaining a purely domestic firm is not a proactive management technique to reduce exposure to foreign exchange risk. It is more of a defensive strategy that avoids exposure altogether. The other options - matching currency cash flows, currency swaps, and parallel loans - are all proactive techniques to manage foreign exchange risk.

Which of the Following Is NOT Identified by Your Authors