A Short Hedge Is a Simultaneous ________ Position in the Spot

question 12

Multiple Choice

A short hedge is a simultaneous ________ position in the spot market and a ________ position in the futures market.

• A) long; long
• B) long; short
• C) short; long
• D) short; short

Analyze the impact of exchange rate fluctuations on exports and imports.

Recognize the influence of inflation rates on currency value in the international market.

Assess the effects of currency depreciation and appreciation on trade balances.

Understand the components and significance of the balance of payments accounts.

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Definitions:

Civil Servants

Employees of the government who are appointed or hired to implement public policy and provide services to the public.

Policy Advocates

Individuals or groups that actively seek to influence or change policies in alignment with specific goals or interests.

Non-Incumbent

An individual or party who is not currently holding or occupying a particular office or position, especially in the context of elections.

Name Recognition

The degree to which a person's or brand’s name is familiar to the public.