IIA Exam IIA-CRMA Topic 4 Question 86 Discussion

Actual exam question for IIA's IIA-CRMA exam

Question #: 86
Topic #: 4

Which of the following is the most effective strategy to manage the risk of foreign exchange losses due to sales to foreign customers?

AHire a risk consultant.

BImplement a hedging strategy.

CMaintain a large foreign currency balance.

DInsist that customers only pay in a stable currency.

Show Suggested Answer

Suggested Answer: C

by Levi at Sep 08, 2024, 09:29 PM

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Viva

2 months ago

Maintaining a large foreign currency balance? That's like trying to catch a falling knife. Hedging is the way to go, my friend. Unless, of course, you're a magician who can predict exchange rates with 100% accuracy.

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Solange

2 months ago

Hiring a risk consultant? Might as well just throw money out the window. Hedging is the clear winner here. Unless, of course, you're feeling lucky and want to try your hand at currency speculation.

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Sherell

1 months ago

Insisting that customers only pay in a stable currency might not always be feasible.

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Sherell

1 months ago

Maintaining a large foreign currency balance could be risky if the exchange rate moves against you.

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Skye

1 months ago

I think implementing a hedging strategy is the way to go to manage foreign exchange risk.

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Joanna

1 months ago

I agree, hiring a risk consultant seems like a waste of money.

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Starr

2 months ago

Insisting customers pay in a stable currency? Good luck with that. They'll just take their business elsewhere. Hedging is the way to go, no doubt about it.

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Phuong

2 months ago

Maintaining a large foreign currency balance? That's just asking to get hit with exchange rate fluctuations. Hedging is the smart choice here.

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Shawn

28 days ago

Implementing a hedging strategy can help protect against currency fluctuations.

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Brock

1 months ago

Hedging is definitely the way to go to manage foreign exchange losses.

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William

2 months ago

I agree, maintaining a large foreign currency balance is risky.

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Rosamond

3 months ago

Hiring a risk consultant seems like overkill. Implementing a hedging strategy is definitely the way to go - it's the most effective way to manage foreign exchange risk.

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