In general, a firm ____ exposed to exchange rate fluctuations will usually have a ____ distribution of possible cash flows in future periods.
A) more; narrower
B) less; wider
C) more; wider
D) none of the above

Question

Quizplus · Accepted Answer

A firm more exposed to exchange rate fluctuations will have a wider distribution of possible cash flows due to the increased uncertainty and variability in exchange rates affecting its revenues and costs.

In General, a Firm ____ Exposed to Exchange Rate Fluctuations