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    Question

    What is the goal of the ‘Master Direction  Foreign

    Exchange Management (Hedging of Commodity Price Risk and Freight Risk in Overseas Markets) Directions, 2022’?
    A To restrict hedging activities to domestic markets Correct Answer Incorrect Answer
    B To provide flexibility in hedging strategies for resident entities Correct Answer Incorrect Answer
    C To limit the use of derivatives for hedging Correct Answer Incorrect Answer
    D To promote gold trading in international markets Correct Answer Incorrect Answer
    E To enhance the regulation of commodity trading Correct Answer Incorrect Answer

    Solution

    The RBI's directive aims to provide additional flexibility in hedging strategies and facilitate more efficient risk management for entities dealing with gold price exposure

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