The reduction or covering of foreign exchange risk is called ? – McqOptions

MCQOPTIONS

1.	The reduction or covering of foreign exchange risk is called ?
A.	hedging
B.	speculation
C.	intervention
D.	arbitrage
Answer» B. speculation

Discussion

No Comment Found

Related MCQs

<p> The rise in value of one currency relative to another is ?</p>
<p> Speculators in foreign exchange markets do all of the following except ?</p>
<p> The agreements that were reached at the Bretton Woods conferences in 1944 established a system ?</p>
<p> Under a system of floating exchange rates there is a general tendency for ?</p>
<p> A fiscal expansion in the UK ?</p>
<p> The price of one country’s currency in terms of another country’s currency is the ?</p>
<p> Exchange rates that are determined by the unregulated forces of supply and demand are ?</p>
<p> If a nation’s interest rates are relatively low compared to those of other countries then the exchange value of its currency will tend to ?</p>
<p> A difference between forward and futures contracts is that ?</p>
<p> The J-curve effect refers to the observation that ?</p>