True about currencies and prices in global trade

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Reference no: EM132090566

1. Which of the following is not true of hedging?

Used to minimize market risk

Requires dedicated professional hedging managers

Requires organized commodity exchange

Can be used to address the risk of buying in dollars

Can be used to protect the dollar value of future foreign currency cash flow

2. Which of the following is not true about currencies and/or prices in global trade?

Floating currency is a currency not associated to the U.S. dollar

The stability of a floating currency is more questionable than pegged currencies

A currency may be pegged and floating simultaneously in some countries

Pegged currency is a currency associated to the U.S. dollar

A pegged currency is more stable than floating or unpegged currency

Reference no: EM132090566

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