An MNC Frequently Uses Either Forward or Futures Contracts to Hedge

question 20

True/False

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

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Definitions:

Unconscious

A part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions.

Dreams

Sequences of thoughts, images, and sensations occurring in a person's mind during sleep, often reflecting unconscious desires or concerns.

Sleep Apnea

A serious sleep disorder that occurs when a person's breathing is repeatedly interrupted during sleep.

Breathing

The process of inhaling and exhaling air to facilitate gas exchange within the body, primarily oxygen intake and carbon dioxide expulsion.