The Practice of Insuring Against Potential Losses That Result from Adverse

question 35

Multiple Choice

The practice of insuring against potential losses that result from adverse changes in exchange rates is called currency ________.

• A) hedging
• B) arbitrage
• C) speculation
• D) conversion

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Definitions:

Productivity

The measure of output per unit of input, indicating the efficiency with which goods and services are produced.

Economic Structure

The classification of an economy based on various sectors, such as agriculture, manufacturing, and services, indicating the allocation of resources among these sectors.

Ownership Of Resources

The legal right or control individuals or entities have over natural, physical, or intellectual properties and resources.

Economic Activities

Activities that involve the production, distribution, and consumption of goods and services within an economy.