Hedging Is the Use of

question 24

Multiple Choice

Hedging is the use of

• A) derivatives or other instruments to increase returns.
• B) derivatives or other instruments to offset risks.
• C) debt to offset risks.
• D) forward contracts.

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Definitions:

Cementum

A specialized bone-like substance covering the root of a tooth, anchoring it to the jawbone via the periodontal ligament.

Accessory Organ

An organ that supports the function of major organs and systems, such as the pancreas in digestion.

Muscularis Externa

The layer of muscle in the gastrointestinal tract wall that is responsible for gut movement through peristalsis.

Serosa

A smooth membrane consisting of a thin layer of cells that secrete serous fluid, lining the outer surface of internal organs and body cavities.