MNCs Can Use Short-Term Foreign Financing to Reduce Their Exposure

question 48

Multiple Choice

MNCs can use short-term foreign financing to reduce their exposure to exchange rate fluctuations. For example, if an American-based MNC has ____ in euros, it could borrow ____, resulting in an offsetting effect.

• A) payables; euros
• B) receivables; euros
• C) payables; dollars
• D) receivables; dollars

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Definitions:

Type D Personality

A personality type characterized by high levels of negative affectivity and social inhibition.

Agreeableness

A personality trait characterized by warmth, kindness, and a cooperative attitude.

Health Benefits

The positive effects on physical and/or mental well-being that come from various activities, dietary habits, or healthcare treatments.

Optimism

A mental attitude characterized by hope and confidence in success and a positive future.