Operating Exposure Measures

question 76

Multiple Choice

Operating exposure measures

• A)the extent to which the foreign currency value of the firm's assets is affected by unanticipated changes in exchange rates.
• B)the extent to which the firm's operating cash flows will be affected by unexpected changes in exchange rates.
• C)the effect of changes in exchange rates will have on the consolidated financial reports of a MNC.
• D)the effect of unanticipated changes in exchange rates on the dollar value of contractual obligations denominated in a foreign currency.

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Definitions:

Hierarchy of Needs

A theory proposed by Abraham Maslow outlining a sequence of human needs from basic physiological requirements to self-actualization.

Reality Principle

The psychological concept that represents the ability of the mind to assess the external world and act upon it accordingly, as opposed to acting on the pleasure principle.

Erogenous Zones

Areas of the body especially sensitive to sexual stimulation.

Psychosexual Stages

A theory proposed by Freud that child development occurs in five stages (oral, anal, phallic, latency, genital) each associated with pleasure in different parts of the body.