One of the main risk management techniques to manage accounting exposure is a:
A) forward market hedge.
B) futures contract hedge.
C) foreign currency options hedge.
D) balance sheet hedge.

Question

Quizplus · Accepted Answer

A balance sheet hedge is specifically used to manage accounting exposure by matching foreign currency assets and liabilities to minimize the impact of exchange rate fluctuations on financial statements.

One of the Main Risk Management Techniques to Manage Accounting