What is the objective in hedging balance sheet exposure?
A) Controlling the movement of foreign currency exchange rates
B) Creating an equilibrium between foreign currency asset and foreign currency liability balances affected by exchange rates
C) To control the cash flow resulting from changes in the foreign currency exchange rates
D) All of the above

Question

Quizplus · Accepted Answer

The objective in hedging balance sheet exposure is to create an equilibrium between foreign currency asset and foreign currency liability balances affected by exchange rates, thereby minimizing the impact of exchange rate fluctuations on the company's financial statements.

What Is the Objective in Hedging Balance Sheet Exposure