In a money market hedge, the firm matches the balance sheet asset with a liability in the same currency.

Name: In a money market hedge, the firm matches the balance sheet asset with a liability in the same currency.
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This statement is true. In a money market hedge, a firm will use a combination of borrowing and investing in the foreign currency to match the value of their asset and liability in the same currency, reducing their currency risk.

In a Money Market Hedge, the Firm Matches the Balance