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

14 days 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

16 days 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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Starr

21 days 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

22 days 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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William

12 hours ago

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

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Rosamond

1 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.

upvoted 0 times