ISO 14721:2012 Space data and information transfer systems -- Open archival information system (OAIS) Quiz 02 24Mar25 - Practice Quiz

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Question 1 of 30

Dr. Anya Sharma, a renowned astrophysicist at the Indian Space Research Organisation (ISRO), has negotiated a contract with Stellar Dynamics Corp, a US-based company, for the provision of specialized sensor equipment for the Chandrayaan-4 mission. The contract, valued at $5 million USD, stipulates payment in USD upon delivery of the equipment to ISRO\'s facilities in Bangalore. However, the contract lacks any specific clauses addressing potential fluctuations in the USD/INR exchange rate between the contract signing date and the payment date, which is estimated to be six months. Given the inherent volatility of the foreign exchange market and the potential for significant shifts in the USD/INR exchange rate, what is the MOST prudent course of action for Dr. Sharma to take to mitigate financial risks associated with this international transaction, considering the principles outlined in ISO 4217 regarding currency code usage in international agreements?

Advocate for the inclusion of a currency adjustment clause or renegotiation provision in the contract that allows for adjustments to the payment amount if the USD/INR exchange rate fluctuates beyond a pre-defined threshold during the contract period.

Maintain the contract as is, relying on the stability of the USD as a global reserve currency and assuming minimal fluctuations in the USD/INR exchange rate over the six-month period.

Secure a comprehensive foreign exchange insurance policy from a reputable insurance provider to cover potential losses arising from adverse movements in the USD/INR exchange rate.

Request Stellar Dynamics Corp to accept payment in a basket of currencies, including USD, EUR, and JPY, to diversify the currency risk exposure and reduce reliance on a single currency.

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