Match List - I with List - II.
|
LIST - I |
LIST - II |
||
|
(A) |
Arbitrage |
(I) |
refers to when an invester accepts and seeks Foreign exchange risk |
|
(B) |
Hedging |
(II) |
refers to a time when foreign exchange shifts, causing the spot rate to vary frequently |
|
(C) |
Speculation |
(III) |
refers to purchase of currency in monetary center where it is cheaper |
|
(D) |
Foreign exchange risk |
(IV) |
refers to avoidance of foreign exchange risk |
Choose the correct answer from the options given below:
1
(A) - (III), (B) - (IV), (C) - (I), (D) - (II)
2
(A) - (I), (B) - (III), (C) - (II), (D) - (IV)
3
(A) - (I), (B) - (III), (C) - (IV), (D) - (II)
4
(A) - (I), (B) - (IV), (C) - (III), (D) - (II)