Using Currency Derivatives to Reduce Potential Transaction,translation,and Economic Risks of Currency

question 35

Multiple Choice

Using currency derivatives to reduce potential transaction,translation,and economic risks of currency movements that could lead to losses for a firm or investor is called_____.

• A) hedging
• B) speculating
• C) a short position
• D) an organized exchange position
• E) a marked-to-market position

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Definitions:

Pattern Formation

Positioning of cells during development that determines the final shape of an organism.

Fetus

The stage of development in mammals following the embryonic stage, characterized by rapid growth and maturation of organs and systems.

Development

The process through which living organisms grow and become more complex, involving physical, biological, and sometimes psychological changes.

Human Blastocyst

A stage of human embryonic development that occurs approximately 5 to 9 days post-fertilization, characterized by a sphere of cells enclosing a fluid-filled cavity and the inner cell mass that will develop into the embryo.