Question
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
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 |
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
6th International Edition
0071229035, 978-0071229036
