MNCs Can Use ____ to Reduce Exchange Rate Risk

question 11

Multiple Choice

MNCs can use ____ to reduce exchange rate risk. This occurs when two parties provide simultaneous loans with an agreement to repay at a specified point in the future.

• A) forward contracts
• B) currency swaps
• C) parallel loans
• D) None of these are correct.

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Definitions:

Risky Shift

The phenomenon where groups tend to make riskier decisions together than individuals would on their own.

Choice Dilemmas Questionnaire

A psychological assessment tool that measures an individual’s decision-making process when faced with moral dilemmas.

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members.

Group Decision Support Systems

Computer-based systems that facilitate collaborative problem solving and decision-making processes within groups, enhancing efficiency and outcomes.