psychology:

What does the term "hedging" mean in financial economics?

a$)$ Investing in risky assets to maximize returns

b$)$ Reducing risk exposure by taking offsetting positions in related assets

c$)$ Speculating on short$-$term price movements in financial markets

d$)$ Borrowing funds to finance investment projects

What is the primary function of investment banks in financ darr larkets?

a$)$ Providing loans to individual investors