If an MNC Expects Cash Inflows of Equal Amounts in Two

question 32

Multiple Choice

If an MNC expects cash inflows of equal amounts in two currencies, and the two currencies are ____ correlated, the MNC's transaction exposure is relatively ____.

• A) negatively; high
• B) negatively; low
• C) positively; low
• D) none of the above

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Definitions:

Intellectual Performance

A measure of cognitive function and ability in tasks requiring thinking, problem-solving, and other mental processes.

Self-control

The ability to regulate one's emotions, thoughts, and behaviors in the face of temptations and impulses.

Permissive

Referring to a parenting or management style characterized by low demands with high responsiveness, often allowing considerable self-regulation.

Impulsiveness

A tendency to act on a whim, displaying behavior characterized by little or no deliberation, reflection, or consideration of the consequences.