MNCs can use ____ to reduce exchange rate risk. This occurs when two parties provide simultaneous loans with an agreement to repay at a specified point in the future.

Name: MNCs can use ____ to reduce exchange rate risk. This occurs when two parties provide simultaneous loans with an agreement to repay at a specified point in the future.
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Question

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Parallel loans involve two parties providing loans to each other in different currencies, agreeing to repay at a future date, thus reducing exchange rate risk.

MNCs Can Use ____ to Reduce Exchange Rate Risk