A company purchases currency futures to respond to currency risk. However, due to increasing exchange rate fluctuations, the company has decided not to trade with foreign partners. Which of the following describes this change in risk response? A. Transfer to mitigation. B. Reduction to avoidance. C. Sharing to avoidance. D. Acceptance to reduction.

A company purchases currency futures to respond to currency risk. However, due to increasing exchange rate fluctuations, the company has decided not to trade with foreign partners. Which of the following describes this change in risk response? A. Transfer to mitigation. B. Reduction to avoidance. C. Sharing to avoidance. D. Acceptance to reduction.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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