A company may become more exposed or sensitive to an individual currency's movements over time because

a. The company has increasingly used the currency to purchase goods.

b. The company has reduced its involvement in the country represented by that currency.

c. The company has increased its hedging.

d. All of the these choices are possible reasons for an increased sensitivity to the individual currency's movement.

2. When using regression analysis to assess the degree of economic exposure, which of the following should never be used as a dependent variable?

a. The company's exports

b. The company's earnings

c. The stock price

d. The percentage change in the company's cash flow

e. All of the these choices could be used as dependent variables.