Counter Party Risk Decreases When Engaging in Financial Hedging of Foreign

question 11

True/False

Counter party risk decreases when engaging in financial hedging of foreign exchange rate risk

---

Definitions:

Conformity

Adjusting one’s behavior or thinking to coincide with a group standard.

Informational Social Influence

Influence resulting from one’s willingness to accept others’ opinions about reality.

Chameleon Effect

The unconscious mimicry of the postures, mannerisms, facial expressions, and other behaviors of one's interaction partners.

Groupthink

The mode of thinking that occurs when the desire for harmony in a decision-making group overrides a realistic appraisal of alternatives.