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NEW QUESTION: 1
An entity has a foreign-currency-denominated trade payable, due in 60 days. To eliminate the foreign currency exchange-rate risk associated with the payable, the entity could:
A. Borrow foreign currency today, convert it to domestic currency on the spot market, and invest the funds in a domestic bank deposit until the invoice payment date.
B. Sell foreign currency forward today.
C. Wait 60 days and pay the invoice by purchasing foreign currency in the spot market at that time.
D. Buy foreign currency forward today_
Answer: D
Explanation:
The entity can arrange to purchase the foreign currency today rather than in 60 days by buying the currency in the forward market. This hedging transaction will eliminate the exchange-rate risk associated with the trade payable.

NEW QUESTION: 2
Top-down approaches typically ____________ the long-term governance burden of services.
A. eliminate
B. decrease
C. None of the above.
D. increase
Answer: B

NEW QUESTION: 3
Refer to the Exhibit.

How many tracks will be returned to the pool if snapshot 'backup' generation 2 is terminated?
A. 0
B. 1
C. 2
D. 3
Answer: C

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