Which of the following is not one of the major reasons for MNCs to forecast exchange rates?
A) to decide in which foreign market to invest the excess cash.
B) to decide where to borrow at the lowest cost.
C) to determine whether to require the subsidiary to remit the funds or invest them locally.
D) to speculate on the exchange rate movements.

Question

Quizplus · Accepted Answer

Speculating on exchange rate movements is not one of the major reasons for MNCs to forecast exchange rates. The other options - deciding where to invest excess cash, where to borrow at the lowest cost, and whether to remit funds or invest them locally - all involve making business decisions based on exchange rate forecasts.

Which of the Following Is Not One of the Major