{"id":84609,"date":"2025-06-01T02:40:48","date_gmt":"2025-06-01T02:40:48","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=84609"},"modified":"2025-06-01T02:40:48","modified_gmt":"2025-06-01T02:40:48","slug":"which-one-of-the-following-terms-is-used-in-economics-to-denote-a-tech","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-terms-is-used-in-economics-to-denote-a-tech\/","title":{"rendered":"Which one of the following terms is used in Economics to denote a tech"},"content":{"rendered":"

Which one of the following terms is used in Economics to denote a technique for avoiding a risk by making a counteracting transaction ?<\/p>\n

[amp_mcq option1=”Dumping” option2=”Hedging” option3=”Discounting” option4=”Deflating” correct=”option2″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC CDS-1 – 2016<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nThe correct answer is Hedging.
\n<\/section>\n
\nHedging is an investment strategy used to offset potential losses or gains that may be incurred by a companion investment. It involves taking an opposite position in a related asset or derivative. The term describes a technique for avoiding a risk (like price fluctuations) by making a counteracting transaction to protect against that risk. Dumping refers to selling goods at an unfairly low price. Discounting relates to calculating present value or deducting interest. Deflating is a reduction in the general price level.
\n<\/section>\n
\nHedging is commonly used in financial markets, such as currency hedging, interest rate hedging, or commodity hedging, using instruments like futures, options, or forward contracts. It aims to reduce volatility rather than eliminate risk entirely, and it often involves a cost.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

Which one of the following terms is used in Economics to denote a technique for avoiding a risk by making a counteracting transaction ? [amp_mcq option1=”Dumping” option2=”Hedging” option3=”Discounting” option4=”Deflating” correct=”option2″] This question was previously asked in UPSC CDS-1 – 2016 Download PDFAttempt Online The correct answer is Hedging. Hedging is an investment strategy used to … <\/p>\n

Detailed SolutionWhich one of the following terms is used in Economics to denote a tech<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1087],"tags":[1098,1120,1190],"class_list":["post-84609","post","type-post","status-publish","format-standard","hentry","category-upsc-cds-1","tag-1098","tag-economic-development","tag-money-banking","no-featured-image-padding"],"yoast_head":"\nWhich one of the following terms is used in Economics to denote a tech<\/title>\n<meta name=\"description\" content=\"The correct answer is Hedging. Hedging is an investment strategy used to offset potential losses or gains that may be incurred by a companion investment. It involves taking an opposite position in a related asset or derivative. The term describes a technique for avoiding a risk (like price fluctuations) by making a counteracting transaction to protect against that risk. Dumping refers to selling goods at an unfairly low price. Discounting relates to calculating present value or deducting interest. Deflating is a reduction in the general price level.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-one-of-the-following-terms-is-used-in-economics-to-denote-a-tech\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which one of the following terms is used in Economics to denote a tech\" \/>\n<meta property=\"og:description\" content=\"The correct answer is Hedging. Hedging is an investment strategy used to offset potential losses or gains that may be incurred by a companion investment. It involves taking an opposite position in a related asset or derivative. The term describes a technique for avoiding a risk (like price fluctuations) by making a counteracting transaction to protect against that risk. Dumping refers to selling goods at an unfairly low price. Discounting relates to calculating present value or deducting interest. 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