__________ Involves Offsetting Exposures in One Currency with Exposures in the Same

question 32

Multiple Choice

__________ involves offsetting exposures in one currency with exposures in the same or another currency, where exchange rates are expected to move in such a way that losses on the first exposed position should be offset by gains on the second currency exposure and vice versa.

• A) forward contract
• B) exposure netting
• C) money-market hedge
• D) currency option

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Definitions:

Meaning

The significance or interpretation of a thing, symbol, or event; the underlying purpose or concept.

Rhesus Factor

A protein substance on the surface of red blood cells that can cause immune response differences, significant in blood transfusion and pregnancy.

Abbreviation

A shortened form of a word or phrase, used to simplify writing and speech.

Pneumocystis Carinii Pneumonia

A severe form of pneumonia caused by the fungus Pneumocystis jirovecii, particularly affecting individuals with weakened immune systems.