For MNCs,the discrepancies in the price of currencies that can occur on different markets:
A)means that MNCs have to shop carefully when they need to buy foreign currency.
B)allows MNCs to avoid losses arising out of currency transactions.
C)relieves MNCs from having to plan currency transactions carefully.
D)has allowed MNCs to become the largest speculators in currencies.

Question

Quizplus · Accepted Answer

Discrepancies in the price of currencies on different markets mean that MNCs have to carefully choose when and where to buy foreign currency to minimize losses and maximize profits. Therefore, option A is the correct answer. Option B may not always be true as there is always a risk associated with currency transactions. Option C is also incorrect as MNCs have to carefully plan their currency transactions to avoid losses. Option D is also incorrect as being a currency speculator is not the main objective of MNCs.

For MNCs,the Discrepancies in the Price of Currencies That Can