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:

Utility Levels

Measures of satisfaction or happiness that consumers derive from consuming goods and services.

Indifference Curve

A graph representing different bundles of goods between which a consumer is indifferent, showing preferences.

Marginal Utility

Marginal utility refers to the additional satisfaction or utility that a consumer gains from consuming one more unit of a good or service.

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