Question: 1. what are the basic types of hedge transactions? how do they differ from each other? 2. what does Net Settlement mean? 3. Criticize the

1. what are the basic types of hedge transactions? how do they differ from each other?

2. what does "Net Settlement" mean?

3. Criticize the following statement: "Exchange losses arise from foreign import activities, and exchange gains arise from foreign export activities"

4. what are foreign currency commitments? why are they considered special?

5. explain the circumstances under which fair value hedge accounting should be used and when cash-flow hedge accounting should be used

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