Off-Balance-Sheet Hedging Involves Taking a Position in FX Forward or Other

question 31

True/False

Off-balance-sheet hedging involves taking a position in FX forward or other derivative securities even though no FX assets or liabilities are on the balance sheet.

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Definitions:

Nonexplosive

Characterizing volcanic eruptions or events that release magma, gas, and ash in a relatively gentle and steady manner.

Thin Lava Flows

Layers of lava that spread out over large areas and cool to form relatively thin sheets of rock.

Lava Fountain

A volcanic phenomenon in which molten lava is forcefully ejected into the air from a vent or crack in the Earth's surface.

Pyroclastic Flow

A rapid flow of hot gases and volcanic debris that descends along a volcano's slopes when there's a violent eruption.