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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. Sell foreign currency forward today.
B. Buy foreign currency forward today_
C. 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.
D. Wait 60 days and pay the invoice by purchasing foreign currency in the spot market at that time.
Answer: B
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. increase
C. None of the above.
D. decrease
Answer: D

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