CIMA Exam CIMAPRA17-BA1-1 Topic 1 Question 101 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 101
Topic #: 1

[All CIMAPRA17-BA1-1 Questions]

The use of hedging is to reduce or eliminate exposure to which of the following?

1. Credit risk

2. Economic risk

3. Transaction risk

4. Transition risk.

A1, 3 and 4

B1, 2 and 4

C2, 3 and 4

D1, 2 and 3

Show Suggested Answer

Suggested Answer: C

by Ozell at Sep 14, 2024, 03:56 AM

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Chi

10 months ago

Whoa, this question is making my head spin! I guess I'll just close my eyes and point at an answer. Let's see, where's my finger landing? Aha, D it is!

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Alverta

9 months ago

User 4: I'm going with option D, let's hope for the best.

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Emilio

9 months ago

User 3: I think I'll go with option B.

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Fidelia

9 months ago

User 2: I know, I'm just going to take a guess.

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Ming

9 months ago

User 1: I feel the same way, this question is tricky.

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Ula

10 months ago

I'm feeling lucky today, so I'm going to choose B. Hedging is used to reduce credit risk, economic risk, and transition risk.

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Joanna

9 months ago

User 3: I agree, choosing option B seems like a good choice.

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Audria

9 months ago

User 2: Yes, it helps to manage exposure to different types of risks.

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Carolynn

10 months ago

User 1: I think hedging is important to reduce risks.

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Julian

10 months ago

So, B it is then.

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Shasta

10 months ago

I agree, hedging is used to reduce credit risk, economic risk, and transition risk.

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Eloisa

10 months ago

I think the answer is B.

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Stephania

11 months ago

So, the answer could be A) 1, 3 and 4?

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Barbra

11 months ago

Hmm, this is a tough one. I'm going to go with C. Hedging is used to reduce economic risk, transaction risk, and transition risk.

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Twanna

9 months ago

Interesting perspectives. I'm sticking with C. Hedging is used to reduce economic risk, transaction risk, and transition risk.

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Theron

9 months ago

I see where you're coming from, but I think it's actually A. Hedging is used to reduce credit risk, transaction risk, and transition risk.

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Leigha

10 months ago

I'm not sure about that. I believe it's B. Hedging is used to reduce credit risk, economic risk, and transition risk.

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Mammie

10 months ago

I think it's actually D. Hedging is used to reduce credit risk, economic risk, and transaction risk.

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Hildred

11 months ago

I believe it's also to eliminate transaction risk.

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Stephania

11 months ago

I think hedging is to reduce credit risk.

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Penney

11 months ago

I'm pretty sure the answer is A. Hedging is used to reduce credit risk, transaction risk, and transition risk, but not economic risk.

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Launa

10 months ago

No, I'm pretty confident it's A. Economic risk is not typically hedged against.

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Benton

10 months ago

I'm not so sure, I think it might be B instead.

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Tatum

11 months ago

I agree, hedging is definitely used to reduce those risks.

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Sommer

11 months ago

I think you're right, A sounds like the correct answer.

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Eun

11 months ago

I think the answer is D. Hedging is used to reduce credit risk, transaction risk, and economic risk, but not transition risk.

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Elina

11 months ago

I think you're right, D covers credit risk, transaction risk, and economic risk.

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Elina

11 months ago

I agree with you, D seems like the correct answer.

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