What Is the Risk to an MNC If Its Receivables

question 27

Multiple Choice

What is the risk to an MNC if its receivables are denominated in one currency and its payables are denominated in another currency?

• A)If the value of the currency in which the payable increases in value relative to the currency in which the receivables are denominated,the default risk on the receivables will increase.
• B)The International Fisher Effect will cause the values of the two currencies to converge,causing the MNC a loss on the receivable it collects.
• C)Since the source of the MNC's collections and the current debts that it owes are in different currencies,a change in the relative values of the two currencies will create either a gain or a loss for the MNC.
• D)If the value of one currency increases relative to the other currency,the MNC will be forced to refinance its debt.

Understand the concept of brain plasticity and its implications.

Recognize the localization of functions within the cerebral cortex.

Identify the effects of brain damage on various cognitive and motor functions.

Understand the differences between the functionalities of the brain's hemispheres.

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Definitions:

Neutral

A term often used in analysis or discussions to indicate a position or opinion that is unbiased or not leaning towards any particular side or outcome.

Error

A mistake in the collection, recording, or analysis of data, often leading to incorrect results or conclusions.

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Generally Accepted Accounting Principles in Canada, a set of accounting standards and practices used in Canada to govern financial reporting.

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