An MNC Frequently Uses Either Forward or Futures Contracts to Hedge

question 20

True/False

An MNC frequently uses either forward or futures contracts to hedge its exposure to foreign payables. To do so, the MNC can either sell the foreign currency forward or sell futures.

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Definitions:

National League

One of the two major professional baseball leagues in the United States, the other being the American League.

Attendance

The act of being present at a place, such as a school or workplace, often tracked for record-keeping purposes.

Linear Model

A mathematical model that assumes a linear relationship between the input variables (independent) and the single output variable (dependent).

Scatterplot

An illustrative technique in statistics that depicts the correlation between two distinct sets of data using a collection of points on a two-dimensional graph.