MNCs Can Use Short-Term Foreign Financing to Reduce Their Exposure

question 31

Multiple Choice

MNCs can use short-term foreign financing to reduce their exposure to exchange rate fluctuations.For example,if an American-based MNC has ____________ in Algerian dinars,it could borrow ___________,resulting in an offsetting effect.

• A) payables;dinars
• B) receivables;dinars
• C) payables;dollars
• D) receivables;dollars

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Definitions:

Institutions

Organizations or complex social systems that establish patterns of behavior and rules within a society, such as educational, religious, or financial organizations.

Latency Stage

In psychoanalytic theory, a period between childhood and puberty when sexual feelings are dormant and children engage in activities that develop their skills and interests.

Deductive Reasoning

A logical process in which a conclusion follows necessarily from the premises presented, moving from general to specific.

Personal Constructs

Individual beliefs or concepts through which people perceive, interpret, and make sense of the world around them.