Is a Situation in Which a Business Undertakes Offsetting Transactions

question 2

Multiple Choice

is a situation in which a business undertakes offsetting transactions in a foreign currency so that there is no net foreign exchange exposure.

• A) A partial hedge
• B) A natural hedge
• C) A super hedge
• D) A currency swap

---

Definitions:

Autonomic Nervous System

Part of the nervous system that controls involuntary body functions, such as heart rate, digestion, and respiration, divided into the sympathetic and parasympathetic nervous systems.

Parasympathetic Nervous System

Part of the autonomic nervous system that conserves energy as it slows the heart rate, increases intestinal and gland activity, and relaxes sphincter muscles.

Insulin

A hormone produced by the pancreas that regulates blood sugar levels by facilitating the uptake of glucose into tissues.

Pancreas

A glandular organ located in the abdomen that plays a crucial role in digestion and insulin production.