Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

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

The use of hedging is to reduce or eliminate exposure to which of the following?1. Credit risk2. Economic risk3. Transaction risk4. Transition risk.
C) 2, 3 and 4
A) 1, 3 and 4
B) 1, 2 and 4
D) 1, 2 and 3

CIMAPRA17-BA1-1 Exam - 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.

Show Suggested Answer Hide Answer
Suggested Answer: C

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

Limited Time Offer

25%

Off

Get Premium CIMAPRA17-BA1-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Anjelica
9 months ago
Not sure about that, seems like hedging is more complex.
upvoted 0 times
...
Bronwyn
10 months ago
Totally agree with D! It covers the main risks.
upvoted 0 times
...
Antonio
10 months ago
Wait, transition risk? Is that even a thing?
upvoted 0 times
...
Felix
10 months ago
I think it's definitely 1, 2, and 3!
upvoted 0 times
...
Lenna
10 months ago
Hedging mainly targets credit and transaction risks.
upvoted 0 times
...
Carri
10 months ago
I feel like economic risk is a big part of hedging, but I'm uncertain about transition risk.
upvoted 0 times
...
Marge
11 months ago
I practiced a similar question last week, and I think the answer might be D since it includes credit and transaction risks.
upvoted 0 times
...
Jarvis
11 months ago
I think hedging is definitely used for transaction risk, but I can't recall if it applies to credit risk too.
upvoted 0 times
...
Kimbery
11 months ago
I remember hedging is mainly about reducing risk, but I'm not sure if it covers all these types.
upvoted 0 times
...
Malinda
11 months ago
Okay, I've got this. Hedging is all about managing financial risks, so the right answer has to include the key types of risks that hedging is used for, like credit risk and economic risk. I'm confident I can figure this out.
upvoted 0 times
...
Jade
11 months ago
Hmm, I'm a bit unsure about this one. I know hedging is used to reduce risk, but I'm not totally clear on the different types of risks mentioned here. I'll have to think it through carefully.
upvoted 0 times
...
Glory
11 months ago
This seems like a straightforward question about the purpose of hedging. I'll carefully read through the options and think about which types of risks hedging is typically used to manage.
upvoted 0 times
...
Delpha
11 months ago
Ugh, I'm drawing a blank on the specific risks that hedging is used to address. I'll have to try to eliminate the wrong answers and make an educated guess. Wish me luck!
upvoted 0 times
...
Chi
2 years 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!
upvoted 0 times
Alverta
2 years ago
User 4: I'm going with option D, let's hope for the best.
upvoted 0 times
...
Emilio
2 years ago
User 3: I think I'll go with option B.
upvoted 0 times
...
Fidelia
2 years ago
User 2: I know, I'm just going to take a guess.
upvoted 0 times
...
Ming
2 years ago
User 1: I feel the same way, this question is tricky.
upvoted 0 times
...
...
Ula
2 years 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.
upvoted 0 times
Joanna
2 years ago
User 3: I agree, choosing option B seems like a good choice.
upvoted 0 times
...
Audria
2 years ago
User 2: Yes, it helps to manage exposure to different types of risks.
upvoted 0 times
...
Carolynn
2 years ago
User 1: I think hedging is important to reduce risks.
upvoted 0 times
...
Julian
2 years ago
So, B it is then.
upvoted 0 times
...
Shasta
2 years ago
I agree, hedging is used to reduce credit risk, economic risk, and transition risk.
upvoted 0 times
...
Eloisa
2 years ago
I think the answer is B.
upvoted 0 times
...
...
Stephania
2 years ago
So, the answer could be A) 1, 3 and 4?
upvoted 0 times
...
Barbra
2 years 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.
upvoted 0 times
Twanna
2 years ago
Interesting perspectives. I'm sticking with C. Hedging is used to reduce economic risk, transaction risk, and transition risk.
upvoted 0 times
...
Theron
2 years 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.
upvoted 0 times
...
Leigha
2 years ago
I'm not sure about that. I believe it's B. Hedging is used to reduce credit risk, economic risk, and transition risk.
upvoted 0 times
...
Mammie
2 years ago
I think it's actually D. Hedging is used to reduce credit risk, economic risk, and transaction risk.
upvoted 0 times
...
...
Hildred
2 years ago
I believe it's also to eliminate transaction risk.
upvoted 0 times
...
Stephania
2 years ago
I think hedging is to reduce credit risk.
upvoted 0 times
...
Penney
2 years 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.
upvoted 0 times
Launa
2 years ago
No, I'm pretty confident it's A. Economic risk is not typically hedged against.
upvoted 0 times
...
Benton
2 years ago
I'm not so sure, I think it might be B instead.
upvoted 0 times
...
Tatum
2 years ago
I agree, hedging is definitely used to reduce those risks.
upvoted 0 times
...
Sommer
2 years ago
I think you're right, A sounds like the correct answer.
upvoted 0 times
...
...
Eun
2 years ago
I think the answer is D. Hedging is used to reduce credit risk, transaction risk, and economic risk, but not transition risk.
upvoted 0 times
Elina
2 years ago
I think you're right, D covers credit risk, transaction risk, and economic risk.
upvoted 0 times
...
Elina
2 years ago
I agree with you, D seems like the correct answer.
upvoted 0 times
...
...

Save Cancel