Examlex
Which of the following statements is true?
Hedging
A risk management strategy used to offset potential losses or gains in an investment by taking an opposite position in a related asset.
Price Changes
Variations in the cost of goods and services over time, influenced by factors such as inflation, supply, and demand.
Rate Changes
Adjustments in interest or exchange rates that impact the financial markets and economic conditions.
Zero Sum Game
A situation in which the gain of one party is exactly matched by the loss of another party, indicating that no net wealth is created or destroyed in the transaction.
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