What Is the Objective in Hedging Balance Sheet Exposure

question 30

Multiple Choice

What is the objective in hedging balance sheet exposure?

• A)Controlling the movement of foreign currency exchange rates.
• B)Balancing foreign currency assets and foreign currency liabilities affected by exchange rates
• C)To control the cash flow resulting from changes in the foreign currency exchange rates
• D)All of the above.

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Definitions:

Journal Bearings

Journal bearings are a type of plain bearing that support radial loads by enclosing the shaft along its length, offering a smooth, lubricated surface for the shaft to rotate within.

Sleeve Bearings

Bearings consisting of a cylindrically shaped liner that allows for relative motion by sliding, used in various machinery for rotational or sliding movements.

Porous Materials

Materials characterized by the presence of pores or voids, making them permeable to liquids or gases.

Cast Materials

Materials that have been shaped by pouring them into a mold while liquid and allowing them to solidify.