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

---

Definitions:

Bald Tires

Tires that have lost their tread, reducing traction and increasing the risk of accidents, especially in wet conditions.

Wartime Sacrifice

The act of giving up something valued for the sake of something else considered to be of more importance or worth, particularly in the context of individuals or societies during war.

Jackie Robinson

Jackie Robinson was the first African American to play in Major League Baseball in the modern era, breaking the baseball color line when the Brooklyn Dodgers started him at first base on April 15, 1947.

Rookie of the Year

An award given annually to the most outstanding first-year player in professional sports leagues.