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A U.S. firm has received a large amount of cash inflows periodically in Swiss francs as a result of exporting goods to Switzerland. It has no other business outside the U.S. It could best reduce its exposure to exchange rate risk by:

a. issuing Swiss franc-denominated bonds.

b. purchasing Swiss franc-denominated bonds.

c. purchasing U.S. dollar-denominated bonds.

d. issuing U.S. dollar-denominated bonds.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9414115

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