Which One of the Following Is Not Generally Considered a Benefit

question 40

Multiple Choice

Which one of the following is not generally considered a benefit of hedging?

• A) Hedging reduces one or more aspects of business risk.
• B) Hedging allows prices to be locked in advance.
• C) The costs of hedging are paid by the speculators.
• D)Hedging can stabilize profits.

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Definitions:

Benefits

Advantages or positive effects that are received or achieved from something, often used in the context of employment, social welfare, or insurance.

Wellness

A holistic approach to health that encompasses physical, mental, and social well-being.

Major Life Events

Significant occurrences that have a large impact on one’s life, requiring substantial adjustments in behavior or attitude.

Social Readjustment Rating Scale

A scale designed to measure the amount of stress in a person's life resulting from major life changes, as part of the stress and coping research.