An MNC Frequently Uses Either Forward or Futures Contracts to Hedge

question 20

True/False

An MNC frequently uses either forward or futures contracts to hedge its exposure to foreign payables. To do so, the MNC can either sell the foreign currency forward or sell futures.

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Definitions:

Combining Form

A linguistic element used in the construction of medical and scientific terminology that generally consists of a root and a vowel to ease pronunciation when combined with another form.

Cancer

A broad term for a large group of diseases characterized by the uncontrolled growth and spread of abnormal cells in the body.

Abbreviation

The act of shortening a word or phrase to create a simpler or more compact form, usually employing the initial letters.

PSA

Prostate-Specific Antigen, a protein produced by the prostate gland, levels of which are tested to screen for and monitor prostate cancer.