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Hello, there’s a question in OCQ kaplan kit which says:
”PZK Co, whose home currency is the dollar, trades regularly with customers in a number of
different countries. The company expects to receive €1,200,000 in six months’ time from a
foreign customer. Current exchange rates in the home country of PZK Co are as follows:” ( it shows dollar has strengthened)”With reference to PZK making foreign currency purchases, which of the following
statements concerning whether PZK Co should ‘lead’ or ‘lag’ in its management of
the anticipated receipt is true?”The entire question is about foreign currency receipt……… so why does the question say with reference to making foreign currency ”purchases” isn’t it foreign currency ”sales”? also it says anticipated ” RECEIPT”
As you have typed it, it does seem to be incorrect in that as you say making foreign purchases would give rise to payments and not to receipts.
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