Which of the Following Currency Risks Could Only Be Hedged

question 610

Multiple Choice

Which of the following currency risks could only be hedged by a non deliverable forward (NDF) ?

• A) an exposure in Latvian Lats (LVL)
• B) an exposure in Russian Rouble (RUB)
• C) an exposure in Romanian Leu (RON)
• D) an exposure in Bulgarian Lev (BGN)

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Definitions:

Rewards Drive

The motivation prompted by the anticipation or receipt of rewards, influencing behavior and decision-making.

Extrinsic Motivators

External incentives such as rewards or punishments that encourage a person to perform an activity, regardless of whether the activity is inherently enjoyable.

Money

A medium of exchange, unit of account, and store of value used to facilitate transactions and measure the value of goods and services.

Fame

The state of being widely known and recognized by the public, often due to achievements or notable qualities.