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    International Financial Management Study Set 1
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    Exam 10: Measuring Exposure to Exchange Rate Fluctuations
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    A US MNC Has the Equivalent of $1 Million Cash Outflows
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A US MNC Has the Equivalent of $1 Million Cash Outflows

Question 6

Question 6

Multiple Choice

A U.S. MNC has the equivalent of $1 million cash outflows in each of two highly negatively correlated currencies. During ____ dollar cycles, cash outflows are ____.


A) weak; somewhat stable
B) weak; favorably affected
C) weak; adversely affected
D) none of the above

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