If an MNC Has a Net Inflow in One Currency

question 21

Multiple Choice

If an MNC has a net inflow in one currency and a net outflow of about the same amount in another currency, then the MNCs' transaction exposure is ____ if the two currencies are ____ correlated.

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

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Definitions:

Creative Work

Original content or ideas produced through imaginative skill, which can be in the form of art, literature, music, etc.

Contractual Agreement

A legally binding arrangement between two or more parties, typically documented in a formal contract, which outlines the terms and conditions of their relationship or deal.

In-House Agency

Consists of the company’s own advertising staff, who may provide full services or a limited range of services.

Ad Copy

The text or written content in an advertising message that aims to inform and persuade potential customers about a product or service.