There Are a Number of Instruments Designed for Foreign Currency

question 41

Multiple Choice

There are a number of instruments designed for foreign currency hedging, all of which are:

• A) forwards.
• B) options.
• C) futures.
• D) OTC instruments.

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Definitions:

Bystander Effect

A phenomenon in social psychology where people are less inclined to assist a victim if there are others around.

Pluralistic Compliance

The phenomenon where individuals conform to the perceived behavior or beliefs of a group, even if they might personally disagree, due to the assumption that the group's consensus represents the correct course of action.

Fear

An emotional response to a perceived threat, characterized by increased alertness, anxiety, and a survival-oriented behavior.

Message

Any verbal, written, or signaled communication sent from one individual or group to another.