Hedging Refers to

question 55

Multiple Choice

Hedging refers to

• A) avoiding high-risk investment opportunities.
• B) a transaction that reduces risk exposure.
• C) the same thing as asset diversification.
• D) avoiding the financial futures market.

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Definitions:

Flood Plains

Flat areas next to rivers and streams that are prone to flooding, naturally fertile due to the deposition of river sediments.

Urban Sprawl

The spread of city buildings and houses into areas that were previously countryside, known for causing environmental and social issues.

Expansion Room

Space specifically designed or allocated to allow for growth or increase in capacity.

Vegetation

Vegetation encompasses the plant life present in a particular region or ecosystem, playing crucial roles in the ecological balance and providing habitats for animals.