Post Utme Abu 2020 Commerce Question 5

Practice objective / multiple choice question 5 from the 2020 Post Utme Abu Commerce examination.

Post Utme Abu 2020 Commerce Objective / Multiple Choice
Question 5 POST_UTME_ABU • 2020 • COMMERCE • objective

A business is considering the use of a foreign exchange market to hedge against exchange rate risk. Which of the following would be a major advantage of using a forward contract?

Answer Options

Correct Answer A. Reduced exchange rate risk
B. Improved cash flow management
C. Increased employee productivity
D. Enhanced supply chain efficiency
Correct Answer
A
Correct Option:
Reduced exchange rate risk

About This Question

This is Post Utme Abu 2020 Commerce Question 5. It is one of the objective questions from the 2020 Post Utme Abu Commerce examination.

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