Which of the Following Is NOT a Basic Hedging Technique

question 13

Multiple Choice

Which of the following is NOT a basic hedging technique during a currency depreciation?

• A) buy local currency forward
• B) sell a local currency put option
• C) reduce levels of local currency cash and marketable securities
• D) loosen credit (increase local currency receivables)

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Definitions:

Contagion Theory

A sociological perspective that suggests ideas, behavior, and attitudes spread through populations like diseases.

Solidarity Theory

A social and political theory that emphasizes unity or agreement of feeling or action, especially among individuals with a common interest; mutual support within a group.

Symbolic Interactionism

A sociological perspective focusing on the ways in which individuals interpret and give meaning to the world through symbolic interactions.

Resource Mobilization Theory

A theory in social movements indicating that the success of social movements depends on resources such as money, labor, and the social organization of these resources.