Important in managing multinational company liquidity

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Reference no: EM131343616

1. Which of the following activities is least important in managing a multinational company's liquidity?

a. developing an information system to track cash flows in all currencies

b. managing translation exposure

c. anticipating which of the foreign currencies in which a company does business will appreciate or depreciate

d. identifying transactions for which leading or lagging strategies could be implemented

2. Which of the following is NOT used for managing exchange rate risk?

a. use a pooling system

b. use a reinvoicing center

c. use a multilateral netting system

d. leading and lagging cash flows in foreign currencies

3. The purchasing power parity hypothesis suggests that exchange rates are influenced by _____.

a. inflation rates

b. central bank intervention

c. interest rates

d. nominal rates

Reference no: EM131343616

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