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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?

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Suggested Answer: A, B, D

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

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Virgie
1 months ago
I disagree with statement B. Money market hedges actually help reduce currency risks.
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Ira
2 months 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.
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Rana
20 days ago
Money market hedges are definitely more complex than forward contracts.
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Royal
21 days ago
I agree, A, C, and D are the correct statements.
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Chau
2 months ago
Haha, 'easy to set up'? That's a good one! E is definitely not true. These things are a pain to set up.
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Tarra
1 months ago
E) They are easy to set up.
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Serina
1 months ago
C) They may be a little more flexible in comparison to a forward contract.
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Lashandra
1 months ago
A) They offer roughly the same outcome as a forward contract.
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Vilma
2 months ago
I agree with Aaron. Statement C is also true as money market hedges can be more flexible.
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Azzie
2 months ago
I disagree, B is also true. Money market hedges still leave the company exposed to currency risks, unlike forward contracts.
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Aaron
2 months ago
I think statement A is true because money market hedges are similar to forward contracts.
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Richelle
2 months 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.
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Arlyne
1 months ago
User 3: I'm not sure about E. Are money market hedges easy to set up?
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Janna
2 months ago
User 2: I think B is also true. Money market hedges leave the company exposed to currency risks.
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Tamra
2 months ago
User 1: I agree, A, C, and D are true. Money market hedges are similar to forward contracts but more flexible and complex.
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