A Jeweler Has a Forward Contract to Reduce the Risk

question 35

Multiple Choice

A jeweler has a forward contract to reduce the risk of fluctuation in gold prices in the future.Identify the risk reduction strategy involved.

• A)Securitization
• B)Amortization
• C)Risk retention
• D)Hedging
• E)Immunization

---

Definitions:

Edna Bonacich

An American sociologist known for her work on ethnic and labor relations, especially concerning the economic dynamics of immigration and the exploitation within capitalist societies.

Racial Privileges

Advantages and entitlements granted to individuals based on their race, often at the expense of minority or marginalized groups, contributing to systemic inequality.

Immigrants

People who come to live permanently in a foreign country.

Ethnic Enclaves

Geographical areas or neighborhoods predominantly inhabited by people with similar ethnic backgrounds, often preserving their cultural heritage and social practices.