Vidyalelo
Management · Q129

International Finance and Treasury

Graduate and Post Graduate · Management · question 129

Q129

Derivatives can be used by an exporter for managing.

A.
currency risk
B.
cargo risk
C.
credit risk
Answer
D.
business risk

Answer: Option C

Solution

Answer: Option C
Solution:
Derivatives can be used by an exporter for managing credit risk. Credit risk is the possibility of a loss resulting from a borrower's failure to repay a loan or meet contractual obligations.