Which of the Following FX Trading Activities Is Used to Hedge

question 78

Multiple Choice

Which of the following FX trading activities is used to hedge FX risk?

• A)The purchase and sale of foreign currencies for the purpose of profiting from forecasting or anticipating future movements in FX rates.
• B)The purchase and sale of foreign currencies to allow customers to partake in and complete international commercial trade transactions.
• C)The purchase and sale of foreign currencies for the purpose of offsetting customer exposure in any given currency.
• D)The purchase and sale of foreign currencies to allow customers to take positions in foreign real and financial investments.
• E)None of the options.

---

Definitions:

Internal Distractions

Disturbances or diversions originating within oneself, such as thoughts or emotions, that interrupt attention or concentration.

Physical Disabilities

Impairments that limit the physical function of limbs or movement, often requiring accommodations.

Pain

A distressing perception and affective reaction linked to genuine or prospective damage to bodily tissues.

Facial Expression

The movement or position of the muscles beneath the skin of the face, often conveying an individual's emotions.