A balance-sheet hedging strategy would offset ________ with ________.

Question

Quizplus · Accepted Answer

A balance-sheet hedging strategy is focused on managing the risk associated with foreign assets and foreign liabilities. As such, the strategy would offset foreign assets with foreign liabilities in order to mitigate the impact of exchange rate fluctuations on the overall balance sheet. The other answer choices may be relevant in other types of hedging strategies, but they do not apply to balance-sheet hedging.

A Balance-Sheet Hedging Strategy Would Offset ________ with ________

A Balance-Sheet Hedging Strategy Would Offset with