Question

Any restructuring of operations that _______ the difference between a foreign currency’s inflows and outflows may _______ economic exposure. A. none of these B. reduces; increase C. reduces; reduce D. increases; reduce

Answer 1

Answer:C. reduces; reduce

Step-by-step explanation:

The extent to which the value of the firm would be effected by unanticipated changes in exchange rates reduces as the difference between a foreign currency’s inflows and outflows reduces also and vice-versa.