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:

Property

Items or assets owned by individuals or entities, including real estate and personal possessions.

Presumed Revoked

The assumption that a legal document, like a will or license, is no longer valid or in effect without direct evidence.

Electrical Fire

A type of fire caused by electrical failures or malfunctions, such as faulty wiring, overloaded circuits, or defective electrical devices.

Consideration

An item of worth provided by each party in a contract, motivating them to engage in the deal for the purpose of exchanging reciprocal actions.