A technique of neutralising risk by taking a position in the derivatives market that is opposite to one’s position in the cash market, thereby reducing or limiting the effect of risk associated with unpredictable changes in price.  What is a ‘Hedge’ A hedge is an investment to reduce the riskContinue Reading

Revenue expenditure: This is expenditure on recurring items, including the running of services and financing capital spending that is paid for by borrowing. This is meant for normal running of governments’ maintenance expenditures, interest payments, subsidies and transfers etc. It is current expenditure which does not result in the creationContinue Reading