What Is a "Hedge

question 23

Multiple Choice

What is a "hedge"?

• A)A financial instrument that is speculative and increases the risk for the company.
• B)An instrument that moves in the opposite direction to another financial asset or liability.
• C)An instrument that moves in the same direction as another financial asset or liability.
• D)A financial instrument that is prohibited by accounting standards under IFRS and ASPE.

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Definitions:

Psychoanalytic Theory

A set of psychological and psychotherapeutic theories and techniques, which primarily focus on unconscious motivations and conflicts.

Psychoanalysis

A therapeutic approach developed by Freud that emphasizes exploring unconscious motivations and conflicts as a means of resolving psychological distress.

Primary Ego Rule

A fundamental principle in psychoanalytic theory referring to the ego's management and regulation of impulses and desires.

Freud's View

The perspectives and theories developed by Sigmund Freud, particularly regarding the unconscious mind, dreams, and the dynamics of personality.