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A. Answer the following multimple choice question No explanation is needed. Only choose the correct answer. 1 mark each. Total Mark 3 If a foreign
A. Answer the following multimple choice question No explanation is needed. Only choose the correct answer. 1 mark each. Total Mark 3
- If a foreign country's interest rate is similar to the UK rate, the forward rate premium or discount will be _________, meaning that the forward rate and spot rate will provide ________ forecasts.
1 point
- close to zero; similar
- close to zero; very different
- substantial; very different
- substantial; similar
- Stock returns are much more correlated across countries than within a country.
1 point
- True
- False
- In the 2014-2015 period, the strengthening of the U.S. dollar against the euro caused several U.S.-based MNCs operating in the European Union region to report lower incomes than they had anticipated. This event is an example of:
1 point
- Translation exposure
- Fundamental exposure
- Transaction exposure
- Economic exposure
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