Start learning →

Risk Management Certificate (UG) — free MCQ practice

Choose from 29 questions across 1 subjects and 3 topics. Open any question for its answer and worked solution, or keep learning through bite-sized lessons and reviews with Quill.

Start learning Risk Management Certificate (UG) with Quill →

Risk Management Certificate (UG) subjects

Finance (29)

Explore popular topics

DerivativesFinanceRisk Management

Try a Risk Management Certificate (UG) question

Acting to reduce a firm's exposure to a risk it already faces is called:Read the answer and worked solution →Betting on a future outcome in order to profit from it is called:Read the answer and worked solution →Merging with its own supplier to control input prices is a firm's use of vertical:Read the answer and worked solution →Although it reduces commodity price risk, that strategy is described as not being a perfect:Read the answer and worked solution →

Worked practice questions

Acting to reduce a firm's exposure to a risk it already faces is called:

  1. Hedging
  2. Heading
  3. Hoarding
  4. Housing
Show answer and solution

Correct answer: A. Hedging

1. The exposure exists before any action is taken. 2. The action is meant to cut that exposure. 3. Such an action is hedging. _Source: OpenStax Principles of Finance 2e, Chapter 20, Risk Management and the Financial Manager._

Open this question →

Betting on a future outcome in order to profit from it is called:

  1. Circulating
  2. Speculating
  3. Stipulating
  4. Simulating
Show answer and solution

Correct answer: B. Speculating

1. No existing exposure is being reduced here. 2. The position is taken deliberately for gain. 3. That is speculating. _Source: OpenStax Principles of Finance 2e, Chapter 20, Risk Management and the Financial Manager._

Open this question →

Merging with its own supplier to control input prices is a firm's use of vertical:

  1. Integration
  2. Innovation
  3. Inspection
  4. Insulation
Show answer and solution

Correct answer: A. Integration

1. The supplier and buyer become one company. 2. Input prices then stop moving against the firm. 3. That strategy is vertical integration. _Source: OpenStax Principles of Finance 2e, Chapter 20, Risk Management and the Financial Manager._

Open this question →

How to practise

  1. Choose a Risk Management Certificate (UG) question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.