The currency exchange risk attached to import activity is best described as a) transactional risk, b) payments risk, c) translational risk, or d) investment risk. Which of the following is not true of the currency exchange pri power and interest rate parity conditions are always met. b) a "fair" forwar calculated using the spot rate for the two currencies in question and a corporation's cost of 1. 2. d price can be m borrowing and short term investment returns. c) The "fair" value referred to in "b" is of the benchmark for evaluating arbitrage opportunities. d) Forward pricing drives the value currency derivative instruments. Aggressive use of tax havens by MNC's a) is rarely questioned by tax authorities. b) significantly impacts an MNC's global tax liability, c) is almost always a criminal activity. d) never exposes MNC's to reputational risk. 3. 4. Which of the following is not true of the modern multinational treasury function? A) Funds positioning is still a critical function. B) Foreign exchange risk is managed more centrally than was the case several decades ago. C) Movement of money globally is cheaper and faster than was the case 40 years ago. D) ERP systems, electronic payments and electronic accounted systems have had a dramatic effect on the organization of treasury departments Which of the following is not true of Transfer pricing? a) it is almost never controversial inside a multinational corporation, b) is a part of the foundation of cost/profit center accounting, c) transfer prices are scrutinized closely by tax authorities, d) Transfer pricing refers to the price schedule used by multinational corporations for transactions with affiliated parties 5