Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

CIMA Exam CIMAPRA19-F03-1 Topic 7 Question 105 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam
Question #: 105
Topic #: 7
[All CIMAPRA19-F03-1 Questions]

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

Show Suggested Answer Hide Answer
Suggested Answer: A, B, D

by Miesha at Jan 26, 2025, 12:40 AM

Limited Time Offer

25%

Off

Get Premium CIMAPRA19-F03-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Virgie
12 days ago
I disagree with statement B. Money market hedges actually help reduce currency risks.
upvoted 0 times
...
Ira
17 days ago
I'm with Richelle on this one. A, C, and D seem to be the correct answers. Money market hedges are no walk in the park.
upvoted 0 times
...
Chau
24 days ago
Haha, 'easy to set up'? That's a good one! E is definitely not true. These things are a pain to set up.
upvoted 0 times
Tarra
9 days ago
E) They are easy to set up.
upvoted 0 times
...
Serina
10 days ago
C) They may be a little more flexible in comparison to a forward contract.
upvoted 0 times
...
Lashandra
12 days ago
A) They offer roughly the same outcome as a forward contract.
upvoted 0 times
...
...
Vilma
27 days ago
I agree with Aaron. Statement C is also true as money market hedges can be more flexible.
upvoted 0 times
...
Azzie
27 days ago
I disagree, B is also true. Money market hedges still leave the company exposed to currency risks, unlike forward contracts.
upvoted 0 times
...
Aaron
29 days ago
I think statement A is true because money market hedges are similar to forward contracts.
upvoted 0 times
...
Richelle
29 days ago
I think A, C, and D are true. Money market hedges offer similar outcomes to forward contracts, but with a bit more flexibility. They are also more complex to set up.
upvoted 0 times
Arlyne
12 days ago
User 3: I'm not sure about E. Are money market hedges easy to set up?
upvoted 0 times
...
Janna
17 days ago
User 2: I think B is also true. Money market hedges leave the company exposed to currency risks.
upvoted 0 times
...
Tamra
19 days ago
User 1: I agree, A, C, and D are true. Money market hedges are similar to forward contracts but more flexible and complex.
upvoted 0 times
...
...

Save Cancel