Currency risks can be reduced by currency hedging or strategic and hedging.

Question

Quizplus · Accepted Answer

Currency risks can be reduced by hedging strategies such as forward contracts, options, and futures, and strategic measures such as diversifying investments across different currencies, maintaining a balance between assets and liabilities in different currencies, and using natural hedges such as matching revenues and expenses in the same currency.

Currency Risks Can Be Reduced by Currency Hedging or Strategic