Answered

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Read the chapter's closing case, and then answer the question:

How do nonfinancial companies cope with currency risk?

A. Participate in spot transactions
B. Conduct a currency swap
C. Participate in forward transactions
D. Invoice in their own currencies

Sagot :

GinnyAnswer

Final answer:

Nonfinancial companies use different methods to manage currency risk, such as spot transactions, currency swaps, forward transactions, and invoicing in their own currencies.


Explanation:

Nonfinancial companies cope with currency risk through various strategies, including participating in spot transactions, conducting currency swaps, participating in forward transactions, and invoicing in their own currencies. For example, participating in spot transactions involves immediate exchange at the current rate to mitigate risk.


Learn more about Currency risk management here:

https://brainly.com/question/32227253


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