Cash Flow Matching Can Be Effective Hedging Technique When

question 37

Multiple Choice

Cash flow matching can be effective hedging technique when

• A) the exposure cash flow is relatively constant and predictable over time.
• B) it is part of the risk-sharing agreement.
• C) there are no local suppliers that can accept longer term payments in their home currency.
• D) all of the above

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Definitions:

Carbohydrate-digesting Enzyme

An enzyme that catalyzes the breakdown of carbohydrates into simpler sugars, facilitating digestion and energy extraction.

Amylase

An enzyme, found chiefly in saliva and pancreatic fluid, that converts starch and glycogen into simple sugars.

Elastase

An enzyme that breaks down elastin, an important protein in connective tissue which provides elasticity.

Enzymatic Reaction

A chemical process catalyzed by enzymes, speeding up reactions in the cells.