It Can Be Argued That,while Financial Hedging Can Be Used

question 41

Multiple Choice

It can be argued that,while financial hedging can be used to stabilize a firm's cash flows,

• A)it is not a substitute for long-term operational hedging.
• B)it is therefore a substitute for long-term operational hedging.
• C)it is inferior to money market hedging.
• D)none of the options.

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Definitions:

Translocation

In genetics, structural rearrangement in which a broken piece of chromosome has become reattached in the wrong location. In plants, movement of organic compounds through phloem.

Casparian Strip

Waxy band between the plasma membranes of abutting root endodermal cells; forms a seal that prevents soil water from seeping through cell walls into the vascular cylinder.

Endodermis

In a plant root, a sheet of cells just outside the vascular cylinder. A Casparian strip between these cells prevents water from seeping through their walls.

Epidermis

The outermost layer of cells covering the body of an organism, often serving as a barrier to the environment.