Which of the Following Statements About Hedging Is (Are)true

question 6

Multiple Choice

Which of the following statements about hedging is (are) true?
I.Hedging is a form of risk transfer.
II.Hedging is used to address the risk of unfavorable price fluctuations.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Progressive

Favoring or implementing social reform or new, liberal ideas.

Agriculture Subsidies

Government payments to farmers to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such goods.

Social Security

A governmental program designed to provide financial support to individuals during retirement, disability, or unemployment.

Medicare

A federal health insurance program in the United States for people aged 65 and older, and for some younger people with disabilities.