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:

Photon

A quantum of electromagnetic energy, often viewed as a particle of light with no mass that exhibits both wave and particle properties.

Wavelength

The distance from one wave peak to the next; the energy of electromagnetic radiation is inversely proportional to its wavelength.

Photosynthesis

The method through which green plants and certain other organisms utilize sunlight to create nutrients from carbon dioxide and water.

ATP and NADPH

Adenosine triphosphate (ATP) and Nicotinamide adenine dinucleotide phosphate (NADPH) are crucial molecules in cellular energy transfer and photosynthesis, serving as energy currency and reducing power, respectively.