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Question
A lag strategy involves:
A. delaying the collection of foreign currency receivables when a foreign currency is expected to appreciate.
B. delaying the collection of foreign currency receivables when a foreign currency is expected to depreciate.
C. attempting to collect foreign currency receivables early when a foreign currency is expected to appreciate.
D. paying foreign currency payables (to suppliers) before they are due when a currency is expected to appreciate.
E. paying foreign currency payables (to suppliers) before they are due when a currency is expected to depreciate.
Answer
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