An MNC Frequently Uses Either Forward or Futures Contracts to Hedge

question 139

True/False

An MNC frequently uses either forward or futures contracts to hedge its exposure to foreign receivables. To do so, the MNC can either sell the foreign currency forward or sell futures.

---

Definitions:

Identification

The psychological process by which an individual aligns themselves with the attitudes, beliefs, or behaviors of another person or group.

Superegos

A component of Freud's psychoanalytic theory that represents the internalized societal standards for right and wrong, working to restrain unacceptable impulses of the id.

Unconditional Positive Regard

An attitude of total acceptance and support towards a person regardless of what they say or do, often used in therapeutic settings.

Healthy Personality

A state of mental well-being where an individual realizes their own abilities, can cope with normal stresses of life, work productively, and is able to make contributions to their community.