The reduction or covering of a foreign exchange risk is called
A) hedging.
B) speculation.
C) intervention.
D) arbitrage.
Question 2
________ refers to the overall political and financial situation of a country, and the extent to which these conditions may affect the ability of a country to repay its debts.
A) Debt-rescheduling
B) IMF conditionality
C) Country risk
D) International debt