Tools That Multinationals Can Use to Help Them Reduce the Risks

question 112

Multiple Choice

Tools that multinationals can use to help them reduce the risks inherent in making investments in foreign countries include ___________.

• A) Options
• B) Hedges
• C) Swaps
• D) All of these

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Definitions:

Process Payments

The procedure of completing financial transactions by transferring funds from one party to another.

Zero-Balance Account

A bank account maintained with a balance of zero, where funds are transferred to cover checks presented for payment.

Chequing Account

A bank account from which money can be withdrawn without notice, usually through the issuance of checks.

Master Account

An overarching account that has the authority and capability to control other accounts within a financial or investment framework.