Exchange Rate Risk Is Highest for Companies with

question 14

Multiple Choice

Exchange rate risk is highest for companies with

• A) international trade contracts denominated in the foreign currency.
• B) investment portfolios that contain foreign securities.
• C) direct foreign investments in foreign subsidiaries.
• D) international trade contracts denominated in the domestic currency.

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Definitions:

Role Ambiguity

The uncertainty or lack of clarity surrounding the expectations, responsibilities, or duties of a particular role within an organization or group.

Tension

The state of being stretched tight or the mental or emotional strain a person may feel under pressure.

Relationship Role

The specific behaviors, responsibilities, and functions expected of an individual in the context of their interpersonal relationships.

Interpersonal Relations

The interactions and relationships between two or more people.