Generally speaking, a firm wants to receive cash flows in a currency that is ________ relative to their own, and pay out in currencies that are ________ relative to their home currency.

Question

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A firm wants to receive cash flows in a currency that is appreciating relative to their own because it increases the value of their revenue. On the other hand, they want to pay out in currencies that are depreciating relative to their own because it reduces their expenses.

Generally Speaking, a Firm Wants to Receive Cash Flows in a Currency