Which of the Following Is a Difference Between Currency Hedging

question 40

Multiple Choice

Which of the following is a difference between currency hedging and strategic hedging?

• A) Currency hedging offsets any currency losses in one region through gains in other regions,while strategic hedging focuses on one region.
• B) Currency hedging is effective in predicting currency movements,whereas strategic hedging has significant currency risks.
• C) Currency hedging deals in multiple currency zones,whereas strategic hedging deals in a single currency zone.
• D) Currency hedging is done through in-house financial specialists,whereas strategic hedging is done through sourcing or foreign direct investment.

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Definitions:

Cobalt

A chemical element with symbol Co and atomic number 27, known for its strength and high temperature resistance, often used in alloys and batteries.

Nonmetal Materials

Substances or materials that do not have the characteristics of metals, including aspects such as electrical conductivity, luster, or malleability.

Magnetized

The state of being magnetically charged, having a magnetic field induced or naturally occurring.

Easily Magnetized

Refers to materials that can quickly become magnetized when exposed to a magnetic field and retain the magnetization for a period.