APICS Certified Supply Chain Professional (CSCP) — Question 88
A formal currency review as an approach for managing supply chain risk is appropriate when relative currency value:
Answer options
- A. moves above a certain level
- B. moves below a certain level
- C. moves above or below a certain level
- D. maintains a constant value
Correct answer: A
Explanation
The correct answer is A because a formal currency review is triggered when the currency value exceeds a certain level, indicating significant risk. Options B and D do not address the necessity of a review for risk management, while C is too broad, as it includes fluctuations in both directions rather than focusing on just the upward movement.