Hedging

question 60

Multiple Choice

Hedging:

• A) is a way to reduce your accounts receivable collection period.
• B) increases risk.
• C) is a non-binding agreement to buy or sell a financial futures contract.
• D) can be carried out with a futures contract.

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Definitions:

Mnemonic Device

A technique used to improve memory by linking new information to familiar concepts or patterns.

Elaborative Rehearsal

A method of memory enhancement which involves thinking about the meaning of the term to be remembered, as opposed to rote repetition.

Persistence

The quality of continuing steadily despite problems, obstacles, or discouragement.

Mnemonic Device

A tool that aids in remembering information, often by using a pattern of letters, ideas, or associations to facilitate retrieval of information from memory.