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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › REVERSE MONEY MARKET HEDGE
HELLO SIR,I dont know about Reverse money market hedge can you please explain what that is as it is tested in asteroid systems question
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 🙂 )