Post Utme Lautech 2023 Commerce Question 5

Practice objective / multiple choice question 5 from the 2023 Post Utme Lautech Commerce examination.

Post Utme Lautech 2023 Commerce Objective / Multiple Choice
Question 5 POST_UTME_LAUTECH • 2023 • COMMERCE • objective

A bank's risk management strategy involves the use of derivatives to hedge against potential losses. Which of the following is a characteristic of this strategy?

Answer Options

A. The bank uses derivatives to speculate on market trends
Correct Answer B. The bank uses derivatives to hedge against potential losses
C. The bank uses derivatives to invest in new products
D. The bank uses derivatives to reduce its liquidity risk
Correct Answer
B
Correct Option:
The bank uses derivatives to hedge against potential losses

About This Question

This is Post Utme Lautech 2023 Commerce Question 5. It is one of the objective questions from the 2023 Post Utme Lautech Commerce examination.

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