When an MNC Finances with a Floating-Rate Loan in a Currency

question 29

Multiple Choice

When an MNC finances with a floating-rate loan in a currency that matches its long-term cash inflows, the MNC is exposed to ____ risk.

• A)interest rate
• B)credit
• C)exchange rate
• D)none of the above

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Definitions:

Professional Baseball

A professional sport played by teams in leagues, notably in the United States and Japan, where it is considered a major part of the sports culture.

Long-Term Memory

A type of memory responsible for the storage of information over an extended period, ranging from a few days to decades.

Unlimited

Not restricted or constrained; having no boundaries or limits.

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Refers to the maximum amount that something can contain or produce, or the ability to perform a particular task or function.