Any restructuring of operations that ____ the difference between a foreign currency's inflows and outflows may ____ economic exposure.

Question

Quizplus · Accepted Answer

Restructuring operations that reduce the difference between a foreign currency's inflows and outflows would reduce economic exposure. This means that there would be less risk associated with fluctuations in foreign currency exchange rates. Therefore, reducing the difference would also reduce economic exposure. Option A is incorrect because reducing operations would mean that economic exposure may increase as there would be a higher risk associated with fluctuations in foreign currency exchange rates. Option B is incorrect because increasing operations would not reduce economic exposure as there would be a higher risk associated with fluctuations in foreign currency exchange rates. Option D is incorrect because it includes both options A and B, which are both incorrect. Option E is incorrect because there is a correct option available.

Any Restructuring of Operations That ____ the Difference Between a Foreign