Financial Accounting MCQS - QUESTION DETAILS

What term refers to the practice of using financial instruments to protect against the risk of adverse price movements in the market?
A. Hedging
B. Financial Planning
C. Working Capital Management
D. Dividend Policy

Hedging involves using financial instruments to protect against risk.

Similar Questions

Which ratio measures the company's ability to meet short-term obligations without relying on inventory sales?






What is the term for the marketplace where short-term funds are borrowed and lent, facilitating the liquidity needs of financial institutions?






In International Finance, what involves the flow of money across national borders for the purpose of financing international trade and investment?






In personal finance, what is the practice of setting aside funds for unexpected expenses and financial emergencies?






In personal finance, what aspect involves owning property and managing the financial aspects of homeownership?






What market is central to International Finance, facilitating the trading of currencies on a global scale?






In the context of corporate finance, what does the term "financial restructuring" involve?






Operating Income is calculated as:






Which type of costs remain constant per unit but vary in total with changes in production volume?






What is the measure of a company's ability to meet its short-term obligations?