Answer the following "T" for True or "F" for False.

Activity Step Feedback 1 The two types of short-term effects on currency movements are transactions risk and transformational risk. f Correct 2 Prolonged periods of relatively high dollar values in world currency markets would be a disadvantage to U.S. exporters and an advantage to their foreign competitors. t Correct 3 A group of banks that collectively make a loan to a firm is called a hedge. f Correct 4 Consolidated risk refers to the ways in which long-term exchange rate movements affect firms f Correct 5 Using currency derivatives to reduce potential transaction, translation, and economic risks of currency movements that could lead to losses for a firm or investor is called hedging. t Correct 6 A syndicate offers payment...