Which of the Following Techniques Is Used by MNCs to Hedge

question 13

Multiple Choice

Which of the following techniques is used by MNCs to hedge transaction exposure?

• A) Future hedge
• B) Forward hedge
• C) Money market hedge
• D) All of the above

Understand the process of translating and remeasuring foreign currency financial statements.

Comprehend the concepts and application of the current rate and temporal methods for foreign currency translation.

Analyze the financial impact of currency exchange rate fluctuations on the financial statements of foreign subsidiaries.

Apply the principle of foreign currency translation to prepare a balance sheet and statement of cash flows.

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Definitions:

Cognitive-behavioral Therapy

A psychotherapeutic treatment that helps patients understand the thoughts and feelings that influence behaviors, aiming to change negative patterns.

Virtual Reality Exposure Therapy

A psychological treatment method that uses virtual environments to expose individuals to stimuli related to their fears or traumas in a controlled manner.

Systematic Desensitization

A behavioral therapy technique used to reduce fear, anxiety, or phobias through gradual exposure to the feared object or situation.

Behavior Modification

The use of empirically demonstrated behavior change techniques to increase or decrease certain behaviors.