Although MNCs may need to convert currencies occasionally, they do not face any exchange rate risk, as exchange rates are stable over time.

Question

Quizplus · Accepted Answer

MNCs do face exchange rate risk as exchange rates are unpredictable and fluctuate over time. This can impact the value of their assets and liabilities, as well as their income and cash flows. They may use hedging techniques to manage this risk.

Although MNCs May Need to Convert Currencies Occasionally, They Do