Some Analysts Have Suggested That There Is an Inverse Correlation

question 33

Multiple Choice

Some analysts have suggested that there is an inverse correlation between the daily value of the dollar and the Dow Jones Industrial Average. Such analysts claim that this inverse relation may be due to the fact that many U.S. companies receive revenues from their operations overseas, making the profits of their foreign subsidiaries more valuable when the dollar depreciates. If true, this relation would be an example of

• A) economic exposure.
• B) accounting exposure.
• C) transaction exposure.
• D) multinational exposure.

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