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    Exam 10: Measuring and Managing Translation and Transaction Exposure
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    One Argument That Favors Centralization of Foreign Risk Management Is
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One Argument That Favors Centralization of Foreign Risk Management Is

Question 45

Question 45

Multiple Choice

One argument that favors centralization of foreign risk management is the ability to take advantage of the portfolio effect through ________.


A) risk shifting
B) risk sharing
C) offshore banking
D) exposure netting

Correct Answer:

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