Question 32

Question

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

Accepted Answer

Implement a hedging strategy.

Mason · Answer

C vs D. Both have drawbacks, but hedging (B) usually hits the risk directly. Not totally sure, tough call here.

Amelia V. · Answer

I don’t think it’s C. D makes sense because stable currency avoids risk, but realistically companies can’t always force customers to pay that way. Pretty sure B is the more common approach since hedging directly manages FX risk.

IIA IIA-CRMA Real Exam Questions [October 2026 Update] Quiz

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

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