Which of the Following Best Describes the Purpose of a Foreign

question 21

Multiple Choice

Which of the following best describes the purpose of a foreign key?

• A) To ensure that each row in the table is unique
• B) To create the relationship between two tables
• C) To provide business information
• D) To support business processes across the organization

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Definitions:

Cross Hedging

A risk management strategy that involves hedging a position in one asset by taking a position in another asset with correlated price movements.

Risk Management

The process of identifying, analyzing, and taking steps to reduce or manage uncertainties and risks to an organization's capital and earnings.

Put Option

An economic arrangement empowering the bearer with the right, albeit without the obligation, to sell a defined amount of a principal asset at a determined price within a set duration.

Call

An option contract that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a specified price within a specified time.