Although MNCs May Need to Convert Currencies Occasionally, They Do

question 71

True/False

Although MNCs may need to convert currencies occasionally, they do not face any exchange rate risk, as exchange rates are stable over time.

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Definitions:

Sum Certain

A specific, fixed amount of money that is clear and unambiguous in a legal agreement or financial transaction.

Shares of Stock

Units of ownership in a corporation, representing a portion of the corporation's capital.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer's sign.

Enforceable Contract

A valid contract that is legally recognized and that can be upheld in a court of law.