The Degree to Which Changes in the Fair Value of a Forward

question 4

Multiple Choice

The degree to which changes in the fair value of a forward contract offset changes in the fair value or cash flows of a hedged item, describes:

• A) transaction exposure.
• B) hedge ineffectiveness.
• C) hedge effectiveness.
• D) transaction variability.

---

Definitions:

Task Significance

The degree to which a job has a substantial impact on the lives or work of other people, within or outside the organization.

Job Characteristics Model

A theory that proposes that the nature of a person's job or the characteristics of the work can affect job satisfaction, motivation, and performance.

Employee Competencies

The range of skills, knowledge, and attributes that employees bring to their work, contributing to their performance and the achievement of organizational goals.

Skill Variety

The degree to which a job or role requires a person to use a wide range of different skills and abilities.