If an MNC Expects Cash Inflows of Equal Amounts in Two

question 68

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 the above

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Definitions:

Effective Communication

The ability to convey information or ideas in a clear, efficient, and understandable manner to the intended audience.

Nonverbal Cues

Communication signals that are not spoken or written but are expressed through body language, facial expressions, gestures, and other physical behaviors.

Ambiguous Words

Words that have more than one interpretation, meaning, or usage, leading to uncertainty or vagueness.

Functions

Mathematical concepts that describe the relationship between a set of inputs and a set of possible outputs, where each input is related to exactly one output.