An operation in order to protect the domestic currency value of an asset or a liability that is denominated in foreign currency is called as
A. Hedging
B. Hermes
C. Indexation
D. Leading
Answer: Option A
Solution(By Examveda Team)
An operation in order to protect the domestic currency value of an asset or a liability that is denominated in foreign currency is called as Hedging. A risk management strategy used in limiting or offsetting probability of loss from fluctuations in the prices of commodities, currencies, or securities. In effect, hedging is a transfer of risk without buying insurance policies.Related Questions on International Finance and Treasury
A. The British Pound
B. The Japanese Yen
C. The Spanish Peso
D. The US Dollar
Not a profit maximizing business is
A. International Monetary Fund
B. International bank for Reconstruction and Development
C. International Financial Corporation
D. World Trade Organisation
A. Merchandise Payment
B. Service Payment
C. Factory Income
D. Transfer payment
Nations that have major economic expansion attract
A. Imports
B. Direct Foreign Investment
C. Exports
D. Privatization
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