Teaching UGC NET Mock Test Series 2025 (Paper 1 & 2) Banking and Financial Awareness Financial Markets
Which of the following statements correctly describe Hedging?
1
It is a risk management strategy that is employed to offset losses in investments.
2
It is a process by which a company can club its assets/debts, form financial instruments and then issue them to investors.
3
It enables the firm to raise capital and provide more loans to its customers.
4
It is an event of share issuing when a company comes up with its share/securities issued for the first time.