Using Derivatives Such as Forwards,options and Money Markets to Control

question 45

Multiple Choice

Using derivatives such as forwards,options and money markets to control currency exposure is called:

• A)swapping.
• B)gambling.
• C)debt contracting.
• D)hedging.

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Definitions:

Gold Trade

The buying, selling, or exchange of gold between entities or individuals, which can involve physical gold or financial instruments based on the price of gold.

Cahokia

An ancient Native American city located near present-day St. Louis, Missouri, known for its massive earthen mounds and significant role in pre-Columbian indigenous culture.

City of the Sun

An ideal and utopian society envisioned by Italian philosopher Tommaso Campanella in his work "La città del Sole" where goods, women, and children are held in common, reflecting 16th-century communist ideals.