Hedging is the process of avoiding or covering a foreign exchange risk.

Name: Hedging is the process of avoiding or covering a foreign exchange risk.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Hedging is a strategy used to minimize or eliminate the impact of foreign exchange rate fluctuations on international transactions, investments, and operations. It involves taking positions in the market that offset potential losses from adverse movements in exchange rates. Therefore, the statement is true.

Hedging Is the Process of Avoiding or Covering a Foreign