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Commerce Business Finance Difficulty: Medium

The main advantages of hedging are (i) Limiting losses (ii) Increases liquidity (iii) Lowers margin outlay (iv) Exchange rate fluctuations (v) Application of different tax rates (vi) Covering political risk in foreign investments

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More Commerce Questions

Which of the below statement is incorrect with regards to assignment of an insurance policy? Match the following. List-I List-II a. Urgency method 1. It avoids in calculable risk and uncertainty in the long run b. Payback method 2. Also known as net gain method c. Unadjusted rate of return method 3. It is simple for the project with too large outlay d. Net present value method 4. Also known as financial statement method Costs of all activities for individual products or services can be called With reference to margin of safety, which of the following will improve it? 1. By lowering BEP through reduction of fixed cost. 2. By adopting a better profitable product mix. Select the correct answer: A . . . . . . . . is used to reflect the changes in purchasing power of money or a whole.