Risk management quize

1) __________ are those who enter into a derivative contract with the objective of covering risk arising out of

• ARBITRAGEURS

• SPECULATOR

• Hedgers

2)Currency swap is a method of

• hedging against foreign exchange risk

• speculating in foreign exchange

• leverage instrument used by cooperative banks

3)When foreign currency assets and liabilities match in terms of amount of exposure and timing of maturities, it is described as:

• Financial hedge

• Natural hedge

• Perfect hedge

4)How many types of hedging are there

• 3

• 4

• 5

5)Hedging against investment risk means strategically using financial instruments or market strategies

• strategically

• Financial

• Market trade