[Blank] Is a Strategy Designed to Minimise Exposure to Unwanted

question 90

Multiple Choice

[blank] is a strategy designed to minimise exposure to unwanted risk by taking a position in one market that offsets exposure to price fluctuations in an opposite position in another market.

• A)Forward contract
• B)Hedging
• C)Insurance
• D)Spot contract

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Definitions:

Capital Balances

The amount of equity ownership a partner has in a partnership, often represented as the difference between their contributions to the partnership and any withdrawals.

Net Loss

Occurs when a company's expenses exceed its revenues during a specific period, indicating a negative financial performance.

Capital Account

An account on the balance sheet that shows the equity and debt investments into a country minus its investments abroad.

Salary

Regular payment from an employer to an employee, typically expressed as an annual sum and paid in monthly or biweekly intervals.