Which of the Following Is the Least Effective Way of Hedging

question 73

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:

Pollution Reduction

Actions or strategies aimed at decreasing the amount of pollutants released into the environment.

Trade Permits

Licenses required by governments for the legal import or export of certain goods, services, or commodities.

Total Cost

The overall expenditure involved in generating products or offering services, comprising both unchanging and adjustable expenses.

Subsidizing

The act of providing financial support by the government to lower the cost of producing goods or services, often to encourage production or consumption.