Question

A(n) _____ involves attempting to collect foreign currency receivables early when a foreign currency is expected to depreciate and paying foreign currency payables before they are due when a currency is expected to appreciate.
A. Follower strategy
B. Interim strategy
C. Lead strategy
D. Lag strategy

Answer 1

Answer:

C. Lead strategy

Explanation:

Based on the information provided within the question it can be said that the term being mentioned is called a lead strategy. Like mentioned in the question this strategy's overall focus is increasing it's capacity when there exists anticipation of an upcoming increase in demand. This increase in demand would therefore cause a currency to depreciate, so the company intents to do everything they can in order to collect their money early.