SSC GD 2021 PYQ — Question 34

SSC GD Constable (English) - 17th November 2021 Shift 2 • General Awareness • Q34

 ______ is a risk management strategy employed to offset losses in investments by
taking an opposite position in a related asset.

Show answer & explanation

Correct answer: B

Explanation

The correct answer is option 2 i.e. Hedging.

  • Hedging in finance refers to protecting investments.
  • A hedge is an investment status, which aims at decreasing the possible losses suffered by an associated investment.
  • Hedging is used by those investors investing in market-linked instruments.