Under the current rate method, specific assets and liabilities are translated at exchange rates consistent with the timing of the item's creation.

The main technique to minimize translation exposure is called a/an …….. hedge.

If a firm's subsidiary is using the local currency as the functional currency, which of the following is NOT a circumstance that could justify the use of a balance sheet hedge?

Management can easily offset both translation and transaction exposure through

Under the current rate method, when management anticipates appreciation of a foreign currency it A. may move funds from cash to savings.

If the British subsidiary of a European firm has net exposed assets of £250,000, and the pound drops in value from euro 1.40/£ to euro 1.30/£, the European firm has a translation……….. .

Multinational enterprises always completely hedge translation exposure.

If a European subsidiary of a U.S. firm has net exposed liabilities of euro 500,000, and the euro drops in value from $1.40/euro to $1.30/euro then the U.S. firm has a translation……….

Using the table below, estimate the net exposure for Souris River Manufacturing of its’ wholling-owned Canadian subsidiary,

Souris River manufacturing (Canada) Balance Sheet December 31 200X

Trong các phát biểu dưới đây, phát biểu nào đúng về điều kiện cân bằng lãi suất có bảo hiểm (IRP)

Unilever (Việt Nam) vay 5.000.000 USD kỳ hạn 1 năm với lãi suất 6%/năm. Tỷ giá giao ngay là 1 USD = 22.500 VND khi Unilever nhận khoản vay. Tỷ giá lúc khoản vay đáo hạn là 1 USD = 23.000 VND. Lãi suất hiệu dụng cho khoản vay trên là ...