In International Finance, Hedging Indicates

question 87

Multiple Choice

In international finance, hedging indicates:

• A) not being able to make a commitment to buy or sell.
• B) delaying a purchase of foreign exchange, hoping the price will fall.
• C) simultaneously buying several currencies to ensure that at least one will rise in value.
• D) avoiding risk of loss by offsetting an obligation to buy a foreign currency by locking in a contract to sell it at the same time.

---

Definitions:

Dramatic Car Accident

A vehicular crash that involves significant damage, injury, or drama, capturing public attention or having a profound personal impact on those involved.

Injuries

Harm or damage to the body caused by external force, which can require medical treatment to heal.

Concept/Framework

An abstract idea or mental structure used to organize knowledge and guide thought or action.

Interprets Information

The process of understanding, analyzing, and making meaning out of data or signals.