Which one of the following terms is used in Economics to denote a technique for avoiding risk by making a counteracting transaction?

Dumping
Hedging
Discounting
Deflating

LohaHridoy

4 views

2025-01-04 04:42

1 Answers

AhmedNazir

Option 2 : Hedging

Dumping	Dumping is exporting goods to other countries at a lower price than the price of goods in their country. It is done to create a monopoly in the market by thrashing domestic manufacturers.
Hedging	It is an investment method to reduce risk loss due to price fluctuation. For example, Two similar products from two different markets can be purchased so that price fluctuation in one market in the future can be offset by the price fluctuation in the other market.
Discounting	Discounting is the process of determining the present value of a payment that is to be received in the future.
Deflating	When the overall price level decreases so that inflation rate becomes negative, it is called deflation.

4 views Answered 2022-09-04 04:29

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