When an MNC Finances with a Floating-Rate Loan in a Currency

question 15

Multiple Choice

When an MNC finances with a floating-rate loan in a currency that matches its long-term cash inflows, the MNC is exposed to ____ risk.

• A) short; interest rate
• B) long; interest rate
• C) short; exchange rate
• D) none of the above

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Definitions:

Compression

The act or process of pressing something or being pressed together, often used to reduce swelling, control bleeding, or support injured limbs.

Urinary Tract Infection

An infection involving the kidneys, bladder, ureters, or urethra, often characterized by pain during urination and an increased urge to urinate.

Polyuria

A condition characterized by the production of abnormally large volumes of dilute urine.

Proteinuria

The presence of abnormal amounts of protein in the urine, often a sign of kidney disease.