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CIMA Exam CIMAPRA19-F03-1 Topic 6 Question 95 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam
Question #: 95
Topic #: 6
[All CIMAPRA19-F03-1 Questions]

Which THREE of the following statements are true of a money market hedge?

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Suggested Answer: A, B, D

Contribute your Thoughts:

Leonie
29 days ago
I think B is also true. Money market hedges still leave the company exposed to currency risks, just in a different way. Gotta be careful with those!
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Denny
1 months ago
Haha, 'easy to set up'? Yeah, right! If only. I'd go with A, C, and D on this one.
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Carlton
6 days ago
User 3: Yeah, they are more complex than forward contracts.
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Dudley
7 days ago
User 2: I think A, C, and D are true statements about a money market hedge.
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Irene
17 days ago
I agree, setting up a money market hedge is not easy.
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Dylan
1 months ago
I agree with Asha. A, C, and D are definitely true. Money market hedges are a bit of a hassle to set up though, so I'm not sure I'd call them 'easy'.
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Asha
1 months ago
A, C, and D seem like the correct options to me. Money market hedges are more flexible but also more complex than forward contracts.
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Ernestine
13 days ago
Yes, that's right. Money market hedges can be a good option for managing currency risks, but they do come with some complexity.
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Anthony
17 days ago
I agree, money market hedges offer a similar outcome to forward contracts but are a bit more flexible and complex.
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Theola
18 days ago
I think A, C, and D are correct. Money market hedges are indeed more flexible but also more complex than forward contracts.
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Bernadine
2 months ago
I disagree with statement B. Money market hedges actually help reduce currency risks.
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Fernanda
2 months ago
I agree with Chuck. Statement C is also true as money market hedges can be more flexible.
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Chuck
2 months ago
I think statement A is true because money market hedges are similar to forward contracts.
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