Whenever a Gas Is Compressed

question 26

Multiple Choice

Whenever a gas is compressed,

• A) work must be done on the gas.
• B) its internal energy must get smaller.
• C) heat must leave the gas.
• D) the temperature of the gas must get smaller.

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Definitions:

Translation Exposure

The risk that a company's financial statements can be affected by changes in exchange rates when foreign operations are consolidated.

Hedging Risk

The process of making an investment or entering into a financial transaction in order to reduce the risk of adverse price movements in an asset.

Exchange-rate Risk

The risk of losing money due to unfavorable changes in exchange rates when investing in foreign-denominated securities.

Hedged

In investment, using strategies to reduce or eliminate the risk of adverse price movements in an asset.