Explain the Difference Between a Macro Hedge and a Micro

question 75

Essay

Explain the difference between a macro hedge and a micro hedge for a financial institution.

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Definitions:

Irresistible Impulse Test

A legal test for insanity that assesses if a defendant was unable to control his or her actions due to a mental illness.

Civil Commitments

A legal process through which an individual with severe mental illness can be court-ordered to receive treatment in a hospital or community-based setting.

Involuntarily

Occurring without one's consent or control.

Dangerousness

The potential to cause harm, injury, or damage to others or oneself.