Leading hedging involves paying in anticipation of exchange rate change.

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Multiple Choice

Leading hedging involves paying in anticipation of exchange rate change.

Explanation:
Leading hedging focuses on timing cash outflows to lock in an exchange rate before it moves, reducing the risk of a worse rate later. By paying a foreign‑currency payable in advance when you expect the foreign currency to strengthen, you fix today’s rate and avoid a higher amount if the rate rises. The other ideas describe different cash‑flow techniques: delaying payments beyond the due date, the currency used on an invoice, or simply matching inflows and outflows, none of which capture the timing-based hedge described by leading.

Leading hedging focuses on timing cash outflows to lock in an exchange rate before it moves, reducing the risk of a worse rate later. By paying a foreign‑currency payable in advance when you expect the foreign currency to strengthen, you fix today’s rate and avoid a higher amount if the rate rises. The other ideas describe different cash‑flow techniques: delaying payments beyond the due date, the currency used on an invoice, or simply matching inflows and outflows, none of which capture the timing-based hedge described by leading.

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