Jacko Co Is a U

question 50

Multiple Choice

Jacko Co. is a U.S.-based MNC with net cash inflows of euros and net cash inflows of Sunland francs. These two currencies are highly negatively correlated in their movements against the dollar. Kriner Co. is a U.S.-based MNC that has the same exposure as Jacko Co. in these currencies, except that its Sunland francs represent cash outflows. Which firm has a higher exposure to exchange rate risk?

• A) Jacko Co.
• B) Kriner Co.
• C) The firms have about the same level of exposure.
• D) Neither firm has any exposure.

---

Definitions:

Withdrawal Symptoms

Physical and psychological effects that occur when a person abruptly stops or reduces the intake of a substance they are addicted to.

Heroin

A highly addictive opioid drug derived from morphine, used illicitly for its euphoric effects.

Smoking

The act of inhaling and exhaling the smoke of tobacco or other substances, often linked to various health risks and diseases.

Birth Weights

Birth weights are the first weights of newborns taken immediately after birth. Birth weight is an important indicator of neonatal health and development prospects.