Hedging Is

question 54

Multiple Choice

Hedging is:

• A) matching assets and liabilities to measure risk.
• B) a risk measurement system.
• C) possible to achieve perfectly in practice.
• D) matching the maturities of assets and liabilities to reduce risk.

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Definitions:

Structuralism

A school of thought in psychology and sociology that emphasizes analyzing and understanding the structure of human thought, society, and culture by breaking them down into their simplest components.

Functionalism

A theory in psychology that considers mental life and behavior in terms of active adaptation to the person's environment, emphasizing the utility of mental processes in adapting to the environment.

Evolutionary Approach

A perspective in psychology that examines human thoughts, feelings, and behaviors through the lens of natural selection and adaptation.

Behavioral Approach

A psychological perspective emphasizing the study of observable behavior and the role of the environment as a determinant of behavior.