A$.$What are the $5$ most commonly employed proactive policies for operating exposure? Define and describe in the space below each policy.

You should include:$-$ a definition, $-$ describe the process, and $-$ comment on any advantages and$/$or disadvantages to the policy.

$1.$Matching currency cash flowso

For matching currency cash flow to work, you need exposure to be $\_\_\_\_\_$ & $\_\_\_\_\_\_$ over time.

$2.$Currency Clauses: Risk$-$Sharing: o

When are risk sharing agreements appropriate?

$3.$Back$-$to$-$Back Loans:o

What are the difficulties of using the B$2$B loan strategy?

$4.$Currency Swaps:o

What are the benefits of the currency swap versus the B$2$B loan?

$5.$Contractual Approaches: