5 Questions
What is the term used to describe a decline in a currency's value?
Depreciation
How are spot rates at two specific points in time denoted?
S and St-1
How do exchange rate movements affect an MNC's value in terms of cash inflows and outflows?
They can affect the amount of cash inflows received from exporting or from a subsidiary and the amount of cash outflows needed to pay for imports.
What does an increase in a currency's value relative to another currency refer to?
Appreciation
What is the term used to describe an increase in the value of one currency in units of another currency?
Appreciation
Test your knowledge of exchange rates and their impact on multinational corporations with this quiz. Explore how exchange rate movements can affect cash inflows and outflows for MNCs, and understand the significance of measuring currency value. Gain insights into the impact of economic conditions on exchange rates and the implications of currency devaluation.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
