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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

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Anjelica
3 months ago
Not sure about that, seems like hedging is more complex.
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Bronwyn
3 months ago
Totally agree with D! It covers the main risks.
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Antonio
3 months ago
Wait, transition risk? Is that even a thing?
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Felix
4 months ago
I think it's definitely 1, 2, and 3!
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Lenna
4 months ago
Hedging mainly targets credit and transaction risks.
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Carri
4 months ago
I feel like economic risk is a big part of hedging, but I'm uncertain about transition risk.
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Marge
4 months ago
I practiced a similar question last week, and I think the answer might be D since it includes credit and transaction risks.
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Jarvis
4 months ago
I think hedging is definitely used for transaction risk, but I can't recall if it applies to credit risk too.
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Kimbery
5 months ago
I remember hedging is mainly about reducing risk, but I'm not sure if it covers all these types.
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Malinda
5 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.
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Jade
5 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.
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Glory
5 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.
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Delpha
5 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!
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Chi
1 year 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
1 year ago
User 4: I'm going with option D, let's hope for the best.
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Emilio
1 year ago
User 3: I think I'll go with option B.
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Fidelia
1 year ago
User 2: I know, I'm just going to take a guess.
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Ming
1 year ago
User 1: I feel the same way, this question is tricky.
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Ula
1 year 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
1 year ago
User 3: I agree, choosing option B seems like a good choice.
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Audria
1 year ago
User 2: Yes, it helps to manage exposure to different types of risks.
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Carolynn
1 year ago
User 1: I think hedging is important to reduce risks.
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Julian
1 year ago
So, B it is then.
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Shasta
1 year ago
I agree, hedging is used to reduce credit risk, economic risk, and transition risk.
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Eloisa
1 year ago
I think the answer is B.
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Stephania
1 year ago
So, the answer could be A) 1, 3 and 4?
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Barbra
1 year 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
1 year 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
1 year 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
1 year 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
1 year ago
I think it's actually D. Hedging is used to reduce credit risk, economic risk, and transaction risk.
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Hildred
1 year ago
I believe it's also to eliminate transaction risk.
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Stephania
1 year ago
I think hedging is to reduce credit risk.
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Penney
1 year 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
1 year ago
No, I'm pretty confident it's A. Economic risk is not typically hedged against.
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Benton
1 year ago
I'm not so sure, I think it might be B instead.
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Tatum
1 year ago
I agree, hedging is definitely used to reduce those risks.
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Sommer
1 year ago
I think you're right, A sounds like the correct answer.
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Eun
1 year 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
1 year ago
I think you're right, D covers credit risk, transaction risk, and economic risk.
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Elina
1 year ago
I agree with you, D seems like the correct answer.
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