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What is the primary objective of hedging in the context of foreign exchange risk management?
  • a)
    To make a profit through speculation.
  • b)
    To minimize the risk of loss due to exchange rate fluctuations.
  • c)
    To avoid all foreign exchange transactions.
  • d)
    To maximize credit for foreign trade.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
What is the primary objective of hedging in the context of foreign exc...
The primary objective of hedging is to minimize the risk of loss due to exchange rate fluctuations. It aims to protect against adverse movements in exchange rates.
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What is the primary objective of hedging in the context of foreign exchange risk management?a)To make a profit through speculation.b)To minimize the risk of loss due to exchange rate fluctuations.c)To avoid all foreign exchange transactions.d)To maximize credit for foreign trade.Correct answer is option 'B'. Can you explain this answer?
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What is the primary objective of hedging in the context of foreign exchange risk management?a)To make a profit through speculation.b)To minimize the risk of loss due to exchange rate fluctuations.c)To avoid all foreign exchange transactions.d)To maximize credit for foreign trade.Correct answer is option 'B'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the primary objective of hedging in the context of foreign exchange risk management?a)To make a profit through speculation.b)To minimize the risk of loss due to exchange rate fluctuations.c)To avoid all foreign exchange transactions.d)To maximize credit for foreign trade.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the primary objective of hedging in the context of foreign exchange risk management?a)To make a profit through speculation.b)To minimize the risk of loss due to exchange rate fluctuations.c)To avoid all foreign exchange transactions.d)To maximize credit for foreign trade.Correct answer is option 'B'. Can you explain this answer?.
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