4. is a mean of securing a low-cost funding for foreign subsidiaries. A parent of one company lends currency to a separate company's subsidiary operating in their domicile nation and the same for the other parent/subsidiary. 5. (Circle the answer) Forward can be used to change the maturity structure. If a bank would like to shorten the maturity of 180-day selling forward transaction, it should buy 180-day (selling/buying) forward and 90-day (selling/buying) forward to reduce the maturity to 90 days. 6. (Circle the answer) If the real exchange rate of domestic currency is greater than 1, it implies that the value of the domestic currency (strengthened/weakened) more than the foreign currency