Which of the following techniques is used by MNCs to hedge transaction exposure?
A) Future hedge
B) Forward hedge
C) Money market hedge
D) All of the above

Name: Which of the following techniques is used by MNCs to hedge transaction exposure? A) Future hedge B) Forward hedge C) Money market hedge D) All of the above
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Question

Quizplus · Accepted Answer

MNCs use futures, forwards, and money market hedges to manage transaction exposure, as each provides a way to lock in exchange rates and mitigate the risk of currency fluctuations.

Which of the Following Techniques Is Used by MNCs to Hedge