Which of the Following FX Trading Activities Is Used to Hedge

question 96

Multiple Choice

Which of the following FX trading activities is used to hedge FX risk?

• A)The purchase and sale of foreign currencies for the purpose of profiting from forecasting or anticipating future movements in FX rates.
• B)The purchase and sale of foreign currencies to allow customers to partake in and complete international commercial trade transactions.
• C)The purchase and sale of foreign currencies for the purpose of offsetting customer exposure in any given currency.
• D)The purchase and sale of foreign currencies to allow customers to take positions in foreign real and financial investments.

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Definitions:

Milgram's Experiment

A series of social psychology experiments conducted by Stanley Milgram, which measured the willingness of participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.

Participants Complied

The situation where individuals involved in a study or activity adhere to the instructions or rules provided.

American Culture

The customs, traditions, and values of the United States, including influences from Native American, Latin American, African, Asian, and European cultures.

Cultural Norms

Shared expectations and rules that guide the behavior of people within social groups or cultures.