While Hedging Through Interest Rate Futures Reduces or Eliminates the Risk

question 52

Multiple Choice

While hedging through interest rate futures reduces or eliminates the risk of loss,it also

• A)Is illegal in some cases
• B)Has not been accepted by most corporate financial managers
• C)Eliminates the possibility of an abnormal gain
• D)None of the above

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Definitions:

Inequality

The unequal distribution or access to resources, opportunities, rights, and privileges among different groups within a society.

Transnational Company

A transnational company operates on a global scale, owning or controlling production or service facilities in one or more countries other than its home country.

Global Commodity Chain

A global system of manufacturing and distribution channels that a product navigates before being acquired by the end user.

Marketer

A person or company responsible for promoting and selling products or services.