In the face of unpredictable movements in exchange rates, businesses should pursue strategies that will reduce their economic exposure.

Question

Quizplus · Accepted Answer

This is true. Unpredictable movements in exchange rates can pose a risk to businesses' profits and financial stability. Pursuing strategies to reduce economic exposure, such as hedging or diversifying operations in different currencies, can help mitigate this risk.

In the Face of Unpredictable Movements in Exchange Rates, Businesses