Which of the Following Might Be Used to Hedge Exposure

question 42

Multiple Choice

Which of the following might be used to hedge exposure in the long run?

• A) long-term forward contract
• B) money market hedge
• C) parallel loan
• D) long-term forward contract AND parallel loan

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Definitions:

Pressure Gradients

A differentiation in pressure that drives the movement of fluids or gases from areas of high pressure to areas of low pressure.

Osmotic Gradients

The difference in concentration of solutes across a semipermeable membrane, which drives the movement of water.

Breathing

The process of moving air in and out of the lungs to facilitate gas exchange with the internal environment, mainly by bringing in oxygen and flushing out carbon dioxide.

AV Node

AV Node (Atrioventricular Node) is a component of the heart's electrical system that delays the transmission of electrical impulses to the ventricles to ensure proper timing of heart contractions.