With Regard to Operational Hedging Versus Financial Hedging

question 29

Multiple Choice

With regard to operational hedging versus financial hedging,

• A)operational hedging provides a more stable long-term approach than does financial hedging.
• B)financial hedging, when instituted on a rollover basis, is a superior long-term approach to operational hedging.
• C)since they both have the same goal, stabilizing the firm's cash flows in domestic currency, they are fungible in use.
• D)none of the above

---

Definitions:

Visual Cortex

is the part of the cerebral cortex responsible for processing visual information, located in the occipital lobe of the brain.

Retinal Ganglion Cells

Neurons located in the retina that receive inputs from multiple photoreceptor cells and transmit visual information to the brain via the optic nerve.

Concepts

General ideas or understandings that can be used to group together objects, events, qualities, or abstract notions sharing common characteristics.

Mental Categories

Cognitive classifications used by the brain to organize experiences and concepts to simplify the processing of information.