In Examining Its Need to Cover Its Exposures to Foreign

question 16

Multiple Choice

In examining its need to cover its exposures to foreign exchange risk,a company obtains current data on the correlation between various currencies to which it is exposed.The company determines that its main currency exposures are to the USD and the JPY.These currencies have a correlation coefficient of +0.96.Based on the spot rate for each of the currencies,the company expects USD cash inflows equivalent to AUD 500 000,and JPY cash inflows equivalent to AUD 495 000.Which of the following statements is most correct?

• A) High positive correlation between USD and JPY (hedge risk exposure)
• B) High positive correlation between USD and JPY (little need to hedge risk) exposure
• C) High positive correlation between USD and AUD (hedge risk exposure)
• D) Low negative correlation between USD and AUD (no need to hedge risk exposure)

Distinguish between different theorists' contributions to motivation theory (e.g., Maslow, Alderfer, McClelland, Herzberg).

Recognize the implications of motivation theories on workplace behavior.

Explain the concepts of equity, expectancy, and acquired needs theories as they relate to motivation.

Understand the characteristics and preferences of individuals based on their dominant needs according to acquired needs theory.

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Definitions:

Commerce Clause

The clause in the U.S. Constitution that gives the federal government the power to regulate business among the states.

Article I

A particular section or provision in a constitution, treaty, or other formal legal document, often referring to specific rights or obligations.

Robert Heilbroner

An American economist known for his works on the history of economic thought and capitalism.

21st and 22nd Centuries

The periods of time spanning from 2001 to 2100 and 2101 to 2200, respectively, in the Gregorian calendar.