When a multinational company has assets and liabilities denominated in the same currency, _____ risk is reduced.
A) diversification
B) currency
C) production capacity
D) country

Question

Quizplus · Accepted Answer

When assets and liabilities are denominated in the same currency, currency risk is reduced because changes in exchange rates will affect both assets and liabilities similarly, minimizing the net impact on the company's financial position.

When a Multinational Company Has Assets and Liabilities Denominated in the Same