The Need to Use Numerous National Currencies in the Conduct

Multiple Choice

The need to use numerous national currencies in the conduct of global business operations is a fact of life for MNEs. For what purpose(s) do they use the foreign exchange markets?

A) Reducing the profit volatility that can arise from exchange rate fluctuations.
B) Providing credit to finance worldwide operations.
C) Conducting day-to-day operations.
D) All of the statements above are uses of the foreign exchange markets.
E) Only statements a and c are uses of the foreign exchange markets.