Benefit from changing exchange rates


Problem: Some firms use "leads" or "lags" to re-time the transfer of funds in international transactions. To benefit from changing exchange rates, firms holding a __________ currency will __________ their payments before the currency drops in value.

Answer choices:

a) hard; lead
b) soft; lag
c) soft; lead
d) hard; lag

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Finance Basics: Benefit from changing exchange rates
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