Question

if a MNC has a net inflow in one country and a net outflow of about the same amount in another currency, then the MNC's transaction exposure is if the two currencies are correlatd. 1. high; negatively, 2. low;negatively, 3. none of these, 4. high;positively

Answer 1

If an MNC has a net inflow in one country and a net outflow of about the same amount in another currency, then the MNC's transaction exposure is high if the two currencies are negatively correlated