As used in international accounting, a “hedge” is:
A)a business transaction made to reduce the exposure of foreign exchange risk.
B)the legal barrier between the various divisions of a multinational company.
C)the loss in US $ resulting from a decline in the value of the US $ relative to foreign currencies.
D)one form of foreign direct investment.
Answer:A
As used in international accounting, a “hedge” is:
A)a business transaction made to reduce the exposure of foreign exchange risk. B)the legal barrier between the various divisions of a multinational company. C)the loss in US $ resulting from a decline in the value of the US $ relative to foreign currencies. D)one form of foreign direct investment.