The Three Principal Types of Hedges Referred to in IAS

question 49

Multiple Choice

The three principal types of hedges referred to in IAS 39 are:

• A)fair-value hedges; market value hedges, cash-flow hedges.
• B)fair-value hedges; natural hedges, cash-flow hedges.
• C)fair-value hedges; hedges of net investments in a foreign operation, cash-flow hedges.
• D)hedges of net investments in a foreign operation; market value hedges, cash-flow hedges.

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Definitions:

Discriminative Stimulus

A stimulus in the presence of which a particular response will be reinforced.

Asking Questions

The act of posing inquiries or seeking information through verbal or written interrogation.

Negative Reinforcement

A behavioral psychology concept where the removal or avoidance of an unpleasant stimulus strengthens a behavior or makes it more likely to occur.

Punishment by Removal

Punishment by Removal involves decreasing the likelihood of a behavior by removing a desirable stimulus or positive condition following the behavior.