When an MNC finances with a floating-rate loan in a currency that matches its long-term cash inflows, the MNC is exposed to ____ risk.
A) short; interest rate
B) long; interest rate
C) short; exchange rate
D) none of the above
Correct Answer:
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Q35: In general, the _ rate payer in
Q36: If an MNC uses a long-term forward
Q37: An upward-sloping yield curve for a foreign
Q38: MNCs can use _ to reduce exchange
Q39: The _ for a given country represents
Q41: A parallel loan represents simultaneous loans provided
Q42: _ swaps are often used by companies
Q43: In a(n) _ swap, the notional value
Q44: Since yield curves are identical across countries,
Q45: If the currency of a foreign currency-denominated
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