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:

Enculturation

The process through which an individual learns their group's culture, norms, values, and behaviors from birth through socialization.

Independence Training

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Self-reliance

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