Multiple Choice
If an MNC invests excess cash in a foreign county, it would like the foreign currency to ____; if an MNC issues bonds denominated in a foreign currency, it would like the foreign currency to ____.
A) appreciate; depreciate
B) appreciate; appreciate
C) depreciate; depreciate
D) depreciate; appreciate
Correct Answer:

Verified
Correct Answer:
Verified
Q35: Usually, fundamental forecasting is used for short-term
Q36: Assume that the forward rate is used
Q37: In market-based forecasting, a forward rate quoted
Q38: If both interest rate parity and the
Q39: If today's exchange rate reflects any historical
Q41: Assume that U.S. annual inflation equals 8
Q42: Which of the following is true regarding
Q43: A fundamental forecast that uses multiple values
Q44: If it was determined that the movement
Q45: The absolute forecast error of a currency