Multinational Firms Can Reduce the Risk of Exchange Rate Changes

question 150

True/False

Multinational firms can reduce the risk of exchange rate changes between the time a sale is made and the time a receivable is collected without cost by hedging.

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Definitions:

Erythrocytes

Red blood cells, which are responsible for carrying oxygen from the lungs to the body's tissues and returning carbon dioxide from the tissues back to the lungs.

Hct

Hematocrit; a measure of the proportion of blood volume that is occupied by red blood cells, typically expressed as a percentage.

HCT

Hematocrit, a measure of the proportion of blood volume that is occupied by red blood cells.

Thymus

A lymphoid organ situated in the neck of vertebrates that produces T-cells for the immune system, especially important during early life.