The Objective of Currency Hedging Is to Eliminate the Change

question 16

True/False

The objective of currency hedging is to eliminate the change in the value of the exposed asset or cash flow from a change in exchange rates.

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Definitions:

Secondary Reinforcer

A stimulus that has become reinforcing through its association with a primary reinforcer.

Stimulus Discrimination

The ability to distinguish between different stimuli, even if they are similar, based on learned associations.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, triggers a conditioned response.

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with a conditioned stimulus.