MNE Cash Flows May Be Sensitive to Changes in Which

question 36

Multiple Choice

MNE cash flows may be sensitive to changes in which of the following?

• A) exchange rates
• B) interest rates
• C) commodity prices
• D) all of the above

---

Definitions:

Z-statistic

A numerical indicator that shows how a specific value compares to the average of a dataset, expressed as the number of standard deviations away from the mean.

Two-tailed Test

A statistical hypothesis test in which the area of rejection is on both sides of the sampling distribution, allowing for testing in both directions.

Z-statistic

A statistical measure that quantifies the distance (in standard deviation units) a data point is from the mean of a distribution.

Two-tailed Test

A statistical test that considers both directions of an effect, testing the possibility of relationships in both positive and negative directions.