Which of the Following FX Trading Activities Is Used to Hedge

question 18

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.
• E)None of the above.

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Definitions:

Telegraphic Speech

A form of communication seen in young children during language development, characterized by simple, essential words without grammatical markers.

Phonemes

The smallest unit of sound in a language that can distinguish words.

Morphemes

The tiniest parts of language grammar that hold semantic value.

Adult Speech

The way in which adults communicate using language, typically more complex and varied in vocabulary than child speech.