Which of the Following Statements Holds True for Hedging

question 91

Multiple Choice

Which of the following statements holds true for hedging?

• A)It refers to using financial instruments to reduce adverse price movements by taking an offsetting position.
• B)It refers to the simultaneous and instantaneous purchase and sale of a currency for a profit.
• C)It refers to a strategy that ensures that a change in interest rates does not affect the value of a portfolio.
• D)It refers to the practice of buying and selling a currency with the expectation that the value will change and result in a profit.
• E)It refers to the method of bringing all financial statements of a parent and its subsidiaries into a single financial statement.

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Definitions:

Prosopagnosia

A neurological disorder characterized by the inability to recognize faces, also known as face blindness.

Recognizing Faces

The cognitive ability to identify familiar faces among a variety of faces by processing unique facial features and expressions.

Associative Agnosia

A condition in which individuals are unable to recognize objects despite having the ability to perceive their shape, color, and texture.

Matching Objects

The cognitive process of identifying similarities or differences among objects and grouping them based on their attributes.