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MNCs Can Use Short-Term Foreign Financing to Reduce Their Exposure

Question 48

Multiple Choice

MNCs can use short-term foreign financing to reduce their exposure to exchange rate fluctuations. For example, if an American-based MNC has ____ in euros, it could borrow ____, resulting in an offsetting effect.


A) payables; euros
B) receivables; euros
C) payables; dollars
D) receivables; dollars

Correct Answer:

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