QUESTION 31

Which of the following activities is least important in managing a multinational company's liquidity?

	a.	developing an information system to track cash flows in all currencies
	b.	managing translation exposure
	c.	anticipating which of the foreign currencies in which a company does business will appreciate or depreciate
	d.	identifying transactions for which leading or lagging strategies could be implemented

1 points

QUESTION 32

Which of the following is NOT used for managing exchange rate risk?

	a.	use a pooling system
	b.	use a reinvoicing center
	c.	use a multilateral netting system
	d.	leading and lagging cash flows in foreign currencies

1 points

QUESTION 33

The purchasing power parity hypothesis suggests that exchange rates are influenced by _____.

	a.	inflation rates
	b.	central bank intervention
	c.	interest rates
	d.	nominal rates