The particular strategy of trying to offset stable inflows of cash from one country with outflows of cash in the same currency is known as:
A) hedging.
B) diversification.
C) matching.
D) balancing.

Question

Quizplus · Accepted Answer

The particular strategy described in the question is called matching. Hedging involves using financial instruments to reduce risk, while diversification involves spreading investments across different types of assets. Balancing is a general term that can refer to any strategy aimed at achieving equilibrium. Therefore, the best choice is C, matching.

The Particular Strategy of Trying to Offset Stable Inflows of Cash