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:

Equity Finance

The method of raising capital through the sale of shares in a company, giving shareholders ownership interests.

Bonds

Fixed income investments where an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period at a fixed interest rate.

Loanable Funds

The money available for borrowing in the economy, which comes from savings and is used for investments and other purposes.

Supply Slopes

This term might be mistaken, but it likely refers to the representation of supply in economics, which traditionally slopes upward on a graph, indicating that as prices increase, suppliers are willing to provide more goods.