When There Is a Close, but Not Perfect, Correlation Between

question 15

Multiple Choice

When there is a close, but not perfect, correlation between the values of the offsetting assets and liabilities, the process of hedging is known as :

• A) close hedging.
• B) cross- hedging.
• C) autocorrelation.
• D) serial hedging.

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Definitions:

Serous Membrane

A thin membrane that covers internal body cavities and secretes a fluid that reduces friction from muscle movement.

Lungs

Paired respiratory organs situated within the chest, responsible for exchanging oxygen and carbon dioxide between the blood and air.

Sural Region

Pertains to the calf area of the leg, where the sural nerve is also located, providing sensory information.

Calf

The back portion of the lower leg in humans, or a young bovine animal.