Which of the Following Is the Least Effective Way of Hedging

question 80

Multiple Choice

Which of the following is the least effective way of hedging exposure in the long run?

• A) long-term forward contract.
• B) currency swap.
• C) parallel loan.
• D) money market hedge.

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Definitions:

Economic

Relating to the economy, or the comprehensive system involving the production, distribution, and consumption of goods and services.

Selective Understanding

The phenomenon of interpreting information in a way that aligns with pre-existing beliefs or opinions, ignoring conflicting data.

Political Beliefs

Individual or collective beliefs and ideologies regarding political systems, policies, and leaders.

Traditional Agenda-Setting

A theory in mass communication that suggests media doesn't tell us what to think, but rather what to think about by selecting which issues are highlighted.