Money market hedging is explained in full in my free lectures on foreign exchange risk management. There is no such term as ‘reverse money market hedge’ (this question was set by the previous examiner and he invented the term!). It depends on whether you are paying or receiving the foreign currency, which way round you do the depositing and borrowing.
This is a very poor question for practicing – it was set by the previous examiner who set some dreadful questions (and for that reason was not examiner for very long 🙂 )
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