By increasing ___________________ before imminent depreciation of a currency instead of holding cash, the firm may reduce its exposure to currency depreciation
Losses.
A) buying power
B) plant and equipment
C) trucks
D) materials handling equipment (such as forklifts)
E) inventory

Question

Quizplus · Accepted Answer

By increasing inventory, the firm would be converting their cash into physical inventory, which can be sold to generate revenue even in a depreciated currency. This strategy can reduce the firm's exposure to currency depreciation losses.

By Increasing ___________________ Before Imminent Depreciation of a Currency Instead