The Type of Hedge Which Is of the Exposure to the Variability

question 25

Multiple Choice

The type of hedge which is of the exposure to the variability in cash flows that is attributable to a particular risk that is associated with all, or some component of, a recognised asset or liability is a:

• A) fair value hedge
• B) cash flow hedge
• C) hedge of a net investment in a foreign operation
• D) all of the above

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Definitions:

Ledger

A comprehensive collection of a company's financial accounts, recording all transactions and financial activities over time.

Data Transfer

The process of moving or copying data from one device or system to another.

Horizontal Analysis

Horizontal analysis is a financial analysis technique that compares historical financial information over a series of reporting periods.

Income Statement

This document summarizes a company's revenue and expenses to highlight the net profit or loss during a particular period.