A(n)_____ involves delaying collection of foreign currency receivables if that currency is expected to appreciate and delaying payables if the currency is expected to depreciate.
A)follower strategy
B)interim strategy
C)lead strategy
D)lag strategy

Question

Quizplus · Accepted Answer

The lag strategy involves delaying collection of foreign currency receivables if that currency is expected to appreciate and delaying payables if the currency is expected to depreciate. This allows the company to benefit from the expected currency movements and reduce the risk of loss due to unfavorable exchange rate fluctuations.

A(n)_____ Involves Delaying Collection of Foreign Currency Receivables If That