Question

Which of the following will help an exporter manage risk?

A Insurance Correct Answer Incorrect Answer
B Arbitrage Correct Answer Incorrect Answer
C Hedging Correct Answer Incorrect Answer
D Insurance Correct Answer Incorrect Answer
E Speculation Correct Answer Incorrect Answer

Solution

Hedging  mainly is a risk management strategy. Hedging means strategically using  financial  instruments or market strategies to offset the risk of any adverse price movements.

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