If an MNC Expects Cash Inflows of Equal Amounts in Two

question 70

Multiple Choice

If an MNC expects cash inflows of equal amounts in two currencies, and the two currencies are ____ correlated, the MNC's transaction exposure is relatively ____.

• A) negatively; high
• B) negatively; low
• C) positively; low
• D) None of these are correct.

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Definitions:

Saturation

In color theory, saturation denotes the intensity of color in an image or visual object; in marketing, it refers to the level of market penetration of a product, service, or message.

Trichromatic Theory

A theory of color vision that suggests our ability to perceive color is based on the response rates of three types of cones in the eye, each sensitive to different light wavelengths.

Color Vision

The capability of the visual system to distinguish objects based on the wavelengths of the light they reflect, emit, or transmit.

Cones

Photoreceptor cells in the retina of the eye responsible for color vision and functioning best under bright light conditions.