Currency hedging is a popular way to minimize the foreign exchange risk inherent in all non-spot transactions.

Question

Quizplus · Accepted Answer

Currency hedging involves taking measures to protect against possible losses resulting from changes in currency exchange rates. This is commonly used in non-spot transactions, where the exchange rate is determined at a later time than the initial agreement. By hedging currency risk, parties can reduce the impact of exchange rate fluctuations on their transactions. Therefore, the statement is true.

Currency Hedging Is a Popular Way to Minimize the Foreign