Business Studies, asked by pariveshsharma, 1 year ago

explain the mechanism of money market hedge with an example.

Answers

Answered by Arslankincsem

Money market hedge refers to the hedging of foreign exchange risk through the use of money market.

A money market refers to the financial market where the liquid and the short-term instruments like the bankers' acceptance, treasury bills and other sort of commercial papers.

There are several different avenues like futures, currency forward etc.

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