Statements about risk management is incorrect

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Reference no: EM131933674

1. Which of the following statements about risk management is incorrect?

A. Transaction exposure management programs, in general, are divided into those that hedge with forward contracts and those that use option or money market hedges.

B. Proportional hedging is a deliberate attempt to under hedge

C. Most companies don't allow the hedging of quotation or backlog exposures

D. Internationally, researchers have not found any uniformity in the use of hedging facilities

2. Mega Widget Corp. offers its customers invoiced in a non-USD currency with this offer: 3/20, net 45. This offer is an attempt by Mega Widget to reduce the ___ exposure.

A. backlog

B. financial

C. quotation

D. billing

E. accounting

Reference no: EM131933674

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