Question

Which of the following term is a strategy that tries to limit risks in financial assets?

A Hedging Correct Answer Incorrect Answer
B Small Account Correct Answer Incorrect Answer
C Current Account Correct Answer Incorrect Answer
D Hypothecation Correct Answer Incorrect Answer
E Laundering Correct Answer Incorrect Answer

Solution

Hedging is a strategy that tries to limit risks in financial assets. It uses financial instruments or market strategies to offset the risk of any adverse price movements.

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