Assume That the British Pound and Swiss Franc Are Highly

question 2

Multiple Choice

Assume that the British pound and Swiss franc are highly correlated. A U.S. firm anticipates the equivalent of $1 million cash outflows in francs and the equivalent of $1 million cash outflows in pounds. During a ____ cycle, the firm is ____ affected by its exposure.

• A) strong dollar; favorably
• B) weak dollar; not
• C) strong dollar; not
• D) weak dollar; favorably

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