Which one of the following terms is used in Economics to denote a technique for

Question

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

Options:

A . Hedging

B . Discounting

C . Deflating

D . Dumping

Answer: Option A
Answer: (a)
Hedging is used in limiting or offsetting the probability of loss from fluctuations in the prices of commodities, currencies or securities.

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