A net inflow in one currency and a net outflow of about the same amount in another currency that are highly positively correlated with the former results in low exchange rate risk exposure for an MNC.
举一反三
- The price of one country's currency in units of another currency or commodity is the ________. A: foreign interest rate B: foreign currency exchange rate C: par value D: international rate
- Spot exchange rate is the exchange rate at which a foreign exchange dealer will convert one currency into another currency on _________________. A: some occasion B: a particular day C: a spot D: a period
- The market price of one currency in terms of another currency is also known as A: the exchange rate between those currencies. B: the future rate between those currencies. C: the spot market. D: the value of arbitrage.
- Currency swaps are commonly used to manage risk, such as ( ). A: Exchange rate risk B: Interest rate risk C: Credit risk D: Moral hazard E: Liquidity risk
- Under a floating exchange rate, the government or central bank ties the official exchange rate to another country's currency or to the price of gold.