An MNC Frequently Uses Either Forward or Futures Contracts to Hedge

question 116

True/False

An MNC frequently uses either forward or futures contracts to hedge its exposure to foreign receivables. To do so, the MNC can either sell the foreign currency forward or sell futures.

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Definitions:

Conscientiousness

A personality trait characterized by diligence, carefulness, and the desire to perform a task well.

Complementary Skill Sets

Diverse abilities and expertise that team members bring to the table, which when combined, enhance team performance and output.

Leadership Making Process

The series of actions or steps taken to lead effectively, develop leadership skills in oneself and others, and establish a strong leadership presence within an organization or group.

Consulting Firm

A business that provides expert advice in a particular area, such as management, education, law, or finance to organizations or individuals.