MNCs use currency forecasting in:
A)speculating in purchasing and selling foreign currency.
B)budgeting,financing,and working capital management.
C)determining their operating cash needs at a specific future date.
D)computing profit or loss on completed transactions.

Question

Quizplus · Accepted Answer

Currency forecasting is widely used by MNCs in budgeting, financing, and working capital management. This involves estimating future exchange rate movements and incorporating them into financial planning and decision-making processes. Speculating in purchasing and selling foreign currency (A) and computing profit or loss on completed transactions (D) are also important applications of currency forecasting, but they are more focused on short-term transactional activities rather than long-term strategic decision-making. Determining operating cash needs at a specific future date (C) is also relevant, but it is more likely to be based on cash flow projections rather than currency forecasting specifically.

MNCs Use Currency Forecasting In