As a country's economy advances, what happens to buyers?
a. They are in a better position to buy and to demand more sophisticated products.
b. Their income decreases because of the glut of products on the market.
c. They become suspicious of a growing economy.
d. They disappear because culture forbids extra purchases.
Question 2
If the purpose of buying currency contracts is to realize a net gain, then the purchaser is _____ and not _____.
a. hedging.speculating
b. speculating.hedging
c. speculating.financi ng
d. hedging.financing
e. Purchasers do not get involved in managing currency fluctuation as this is solely a finance department activity.
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