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CTP · Question #130
(Topic 2) A large U.S. company is planning to fund its Canadian subsidiary. Currently, the Canadian dollar is trading at CAD 1.25 per U.S. dollar, and the U.S. dollar is expected to depreciate in…
The correct answer is A. Leading. See the full explanation below for the reasoning.
Question
- (Topic 2)
A large U.S. company is planning to fund its Canadian subsidiary. Currently, the Canadian dollar is trading at CAD 1.25 per U.S. dollar, and the U.S. dollar is expected to depreciate in the near term. To manage this FX exposure, what technique should the company implement?
Options
- ALeading
- BRe-invoicing
- CLagging
- DMulticurrency accounts
How the community answered
(43 responses)- A77% (33)
- B12% (5)
- C7% (3)
- D5% (2)
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