In Hedge Accounting, Which of the Following Exposure Should Be

question 38

Multiple Choice

In hedge accounting, which of the following exposure should be hedged by foreign currency derivative?

• A) Temporal exposure
• B) Fair value exposure
• C) Derivative exposure
• D) Forward contract exposure

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Definitions:

OOS

OOS stands for Out of Service, a designation that indicates a vehicle or driver has been found to have violations that prevent them from operating until corrected.

Excessive Toe-in

An alignment condition where the front of the wheels are closer to each other than the rear, which can cause uneven tire wear and handling issues.

Accelerated Tire Wear

The faster than normal deterioration of tire tread, often due to improper alignment, balance, or vehicle operation.

Directional Tracking

The ability of a vehicle to maintain a straight path or follow a desired course with minimal driver input.