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:

Electra Complex

The daughter’s love for her father and wish for her mother’s death; attributed to Carl Jung.

Oedipus Complex

The male child’s love for the mother and wish for the father’s death during the phallic stage.

Anal-retentive Personality

A term derived from Freudian theory indicating a person who is excessively orderly, perfectionistic, and rigid, often stemming from early toilet training experiences.

Anal-expulsive Personality

A psychoanalytic concept that suggests a personality type characterized by messiness, carelessness, and a lack of self-control, believed to originate from certain experiences in early childhood.