"The Dam Is on the Verge of Failing, and the Downstream

question 45

Multiple Choice

"The dam is on the verge of failing, and the downstream residents are in danger!" cried the on-scene reporter. Tamara Johnson, the power plant manager, replied, "Stay calm. We implemented the emergency protocol over 24 hours ago, and we have evacuated all potentially affected residents." The emergency protocol is an example of a ________ plan.

• A) strategic
• B) single-use
• C) standing
• D) contingency
• E) SWOT

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Definitions:

Hedge Risk

The practice of making investments to reduce the risk of adverse price movements in an asset, typically involving derivatives.

New Securities

Financial instruments that have been recently issued, including stocks, bonds, or other financial assets available for investors to buy.

Transactions Exposure

Refers to the potential for a company's cash flows and thus its market value to change due to a change in exchange rates.

Swap Contract

A financial agreement where two parties agree to exchange the cash flows or liabilities from two different financial instruments.