Which of the Following Statements Holds True for Hedging

question 91

Multiple Choice

Which of the following statements holds true for hedging?

• A)It refers to using financial instruments to reduce adverse price movements by taking an offsetting position.
• B)It refers to the simultaneous and instantaneous purchase and sale of a currency for a profit.
• C)It refers to a strategy that ensures that a change in interest rates does not affect the value of a portfolio.
• D)It refers to the practice of buying and selling a currency with the expectation that the value will change and result in a profit.
• E)It refers to the method of bringing all financial statements of a parent and its subsidiaries into a single financial statement.

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Definitions:

Oregon System

A set of political reforms adopted in the early 20th century in Oregon, including initiatives, referenda, and the recall of public officials, aimed at increasing public participation.

Urban Progressives

Reformers in the late 19th and early 20th centuries focused on addressing social issues in cities, including housing, sanitation, and labor.

Public Transportation

is a system of vehicles such as buses and trains provided by a community for shared use among its residents, often designed to facilitate commuting.

Political Machines

Organizations characterized by a strong central leadership which work to secure and maintain political power, often through the use of patronage and sometimes corrupt practices.