_____ refers to non-financial companies spreading out its activities in different currency zones in order to offset the currency losses in certain regions through gains in other regions.
A) Currency hedging
B) Currency pegging
C) Strategic hedging
D) Currency swapping

Question

_____ refers to non-financial companies spreading out its activities in different currency zones in order to offset the currency losses in certain regions through gains in other regions.
A) Currency hedging 
B) Currency pegging 
C) Strategic hedging 
D) Currency swapping

Quizplus · Accepted Answer

Strategic hedging refers to non-financial companies spreading out its activities in different currency zones in order to offset the currency losses in certain regions through gains in other regions. Currency hedging involves using financial instruments to reduce the risk of currency fluctuations, currency pegging involves tying the value of a currency to another currency or a commodity, and currency swapping involves exchanging one currency for another with a predetermined exchange rate and date of settlement.

_____ Refers to Non-Financial Companies Spreading Out Its Activities in Different